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Full text of "North Carolina Register v.4 no. 12 (9/15/1989)"



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NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



CORRECTION 
EHNR 

FINAL DECISION LETTERS 



& 



Si 



PROPOSED RULES 

Human Resources 

Justice 

State Personnel 

FINAL RULES 

Correction 
Transportation 



ISSUE DATE: SEPTEMBER 15, 1989 
Volume 4 • Issue 12 • Pages 617-658 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North Carolina 
Register is available by yearly subscription at a cost of 
one hundred and five dollars ($105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 11666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 days, 
whichever is less. An agency adopting a temporary rulr 
must begin normal rule-making procedures on the per 
manent rule at the same time the temporary rule is 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules of 
25 state agencies and 38 occupational licensing boards. 
The NCAC comprises approximately 15,000 letter size, 
single spaced pages of material of which approximate- 
lv 35% is changed annually. Compilation and publica- 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Each 
state agency is assigned a separate title which is fur- 
ther broken down by chapters. Title 21 is designated 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimum 
cost of two dollars and 50 cents ($2.50) for 10 
pages or less, plus fifteen cents ($0.15) per each 
additional page. 

(2) The full publication consists of 52 volumes, 
totaling in excess of 15,000 pages. It is sup- 
plemented monthly with replacement pages. A 
one year subscription to the full publication in- 
cluding supplements can be purchased for 
seven hundred and fifty dollars ($750.00). In- 
dividual volumes may also be purchased witl 
supplement service. Renewal subscriptions for 
supplements to the initial publication available. 

Requests for pages of rules or volumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pro- 
cedures to be followed. For specific statutory language, 
it is suggested that Articles 2 and 5 of Chapter 150B of 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue, 
page number and date. 1:1 NCR 101-201, April 1, 1986 

refers to Volume 1, Issue 1, pages 101 through 201 of 
the North Carolina Register issued on April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
($750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 



ISSUE COM EMS 




Office of Administrative Hearings 

P. O. Drawer 1/666 

Raleigh, AC 27604 

(919) 733- 2678 



James R. Scarcclla Sr., 

Deputy Director 
Molly Masich, 

Director APA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



I. CORRECTION 

EHNR 617 

II. FINAL DECISION LETTERS 

Voting Rights Act 618 

III. PROPOSED RULES 
Human Resources 

Medical Assistance 620 

Justice 
N.C. Private Protective 

Services Board 621 

State Personnel 

Office of State Personnel 624 

IV. FINAL RULES 

Correction 

Division of Prisons 646 

Transportation 
Division of Motor Vehicles.... 648 

V. CUMULATIVE INDEX 656 



NOR III CAROLINA REGISTER 

Publication Deadlines and Schedules 

(January 1989 - May 1990) 



Issue 
Date 



01/02/89 
01/16/89 
02/01/89 
02/15/89 
03/01/89 
03/15/89 
04/03/89 
04/14/89 
05/01/89 
05/15/89 
06/01/89 
06.15/89 
07/03/89 
07/14/89 
08/01/89 
08/15/89 
no hi so 
09/15/89 
10,02/89 
10/16/89 
11/01/89 
11/15/89 
12/01/89 
12/15/89 
01/02/90 
01/16/90 
02/01/90 
02/15/90 
03/01/90 
03/15/90 
04/02/90 
04/16/90 
05/01/90 
05/15/90 



last Day 

for 

Filing 



12/08/88 
12/27/88 
01/10/89 
01/26/89 
02/08/89 
02/21/89 

03 '10/ 89 
03/23/89 

04 10, 89 

04 '24, 89 

05 10/89 

05 24/89 

06 12/89 

06 22 89 

07 1 1 89 
07/25/89 
081 1/89 
08'24/89 
09 11/89 
09/25/89 
10/11/89 
10/24,89 
11/07/89 

11 22 89 

12 07 SO 
12/20/89 
01/10/90 
01/25/90 
02/08/90 
02/22/90 
03/12/90 
03'23,90 
04/09/90 
04 2490 



last Day 
for 

Electronic 
Filing 



12/15/88 
01/03/89 
01/17/89 
02/02/89 
02/15/89 
03/02/89 
03/17/89 
03 31 SO 
04/17,89 
05,01/89 
05/17/89 
06/01/89 
06/19/89 

06 29 89 

07 18 89 
08/01/89 
08/18/89 
08,31/89 
09.18,89 
10 02/89 
10/18/89 
10/31/89 
11/15/89 
12,01/89 
12/14,89 
12/29/89 
01/18/90 
02/01/90 

02 15 90 

03 01 90 

03 10 00 
03/30,90 

04 17,90 
05,01,90 



Earliest 
Date for 
Public 
Hearing & 
Adoption by 
Agency 

+++*++++ 

02/01/89 
02/15/89 
03/03/89 
03/17/89 
03/31/89 
04/14/89 
05/03/89 
05/14/89 
05/31/89 
06/14/89 
07/01/89 
07/15,89 
08/01/89 
08/13/89 
08/31/89 
09/14,89 
10/01/89 
10/15/89 
11/01/89 
11/15/89 
12/01/89 
12/15/89 
12/31/89 
01/14/90 
02/01/90 
02/15/90 
03/03/90 
03/17/90 
03/31/90 
04/14/90 
05/02/90 
05/16,90 
05/31/90 
06/14,90 



Earliest 

L'ffective 
Date 



05/01/89 
05/01/89 
06/01/89 
06/01/89 
07/01/89 
07/01/89 
08/01/89 
08/01/89 
09/01/89 
09/01/89 
10/01/89 
10/01/89 
11/01/89 
11/01 89 
12 01 89 
12 '01, 89 

01 01/90 
01/01/90 

02 01 00 

02 1 90 
03/01/90 

03 01,90 
04/01/90 
04/01/90 
05/01 90 
05 '01/90 
06 01,90 
06/01/90 
07/01/90 
07/01/90 
08/01 90 
08/01,90 
09/01/90 
09/01/90 



* The "Earliest Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Dale", that the agency files the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



CORRECTION 



CHANGE IN NOTICE AS PUBLISHED IN THE NORTH CAROLINA REGISTER, VOLUME 
4, ISSUE 10 ON PAGE 552. 

TITLE 15 ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 

The Governor's Waste Management Board will be unable to conduct the rulemaking hearing sched- 
uled for September 21, 1989, due to the special legislative session on hazardous wastes scheduled for 
the same day. The public notice and proposed rules for this hearing appeared in the N. C. Register, 
Volume 4, Issue 10, Page 552, on August 15, 1989. The rulemaking hearing has been rescheduled as 
follows: 

i V otice is hereby given in accordance with G.S. I SOB- 1 2 that the Department of Environment. Health, 
and Natural Resources /Governor's Waste Management Board intends to repeal rule(s) cited as 10 
SCAC 48A .0101 -.0105, .0107 - .0108, .0201 - .0204, .0301 - .0303; and adopt rule(s) cited as 10 NCAC 
4SA .0401 - .0414. .0501 - .0514. 

1 he proposed effective date of this action is January L I WO. 

1 he public hearing will be conducted at 10:00 a.m. on October 19, 198 9 in the Ground Eloor Hearing 
Room. Archdale Building. 512 N. Salisbury- Street. Raleigh, North Carolina 2761 1 . 

C_. omment Procedures: Written comments concerning these rules must be submitted by October 18, 
1989. to: Executive Director. Governor's Waste Management Board. 325 X. Salisbury Street, Raleigh, 
North Carolina 276/1. Oral Comments may be presented at the hearing. In addition, a fiscal impact 
statement on the ride adoptions are available upon written request from the same address. 



NOR 77/ CAROLINA REGIS TER 617 



VOTING RIGHTS ACT FINAL DECISION LETTERS 



[G.S. 120-30.9H, effective July 16, 1986, requires that all letters and other documents issued by the 
Attorney General of the United States in which a final decision is made concerning a "change af- 
fecting voting" under Section 5 of the Voting Rights Act of J 965 be published in the North Carolina 
Register. J 



U.S. Department of Justice 
Civil Rights Division 

JPT:LLT:ST:rac 

DJ 166-012-3 Voting Section 

Y8286 P.O. Box 66128 

Zl 192 Washington, D.C. 20035-6128 

August 24, 1989 

David A. Ilolec, Esq. 

City Attorney 

P.O. Box 1388 

I umberton. North Carolina 28359 

Dear Mr. Ilolec: 

This refers to the procedures for conducting the September 12, 1988, special election, including the 
use of paper ballots, for the City of Lumberton in Robeson County, North Carolina, submitted to the 
Attorney General pursuant to Section 5 of the Voting Rights Act of 1965, as amended, 42 L'.S.C. 
1973c. We received your submission on June 30, 1989. 

The Attorney General does not interpose any objections to the changes in question. However, 
we feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such changes. See the Procedures for the Administration of Section 5 (28 C.I-.R. 
51.41). 

Sincerely, 



James P. Turner 

Acting Assistant Attorney General 

Civil Rights Division 



By: 



Barry H. Weinberg 
Acting Chief, Voting Section 



618 NORTH CAROLINA REGISTER 



VOTING RIGHTS ACT FINAL DECISION LETTERS 



U.S. Department of Justice 
Civil Rights Division 

JPT:I IT:RA:dfI:gmh 

D.I 166-012-3 Voting Section 

Y8048-8050 P.O. Box 66128 

Washington, DC. 20035-6128 



August 23, 1989 



Richard J. Rose, Ksq. 

Poyner & Spruill 

P.O. Box 353 

Rocky Mount, North Carolina 27802-0353 



Dear Mr. Rose: 



This refers to the three annexations [Ordinance Nos. 179, 180, and 181 ( 1 989)1 to the City of 
Rocky Mount in Idgecombe and Nash Counties, North Carolina, submitted to the Attorney General 
pursuant to Section 5 of the Voting Rights Act of 1965, as amended, 42 L'.S.C 1973c. We received 
your submission on June 28, 1989. 

The Attorney General does not interpose any objections to the changes in question. However, 
we feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such changes. See the Procedures for the Administration of Section 5 (28 C.F.R. 

51.41). 

Sincerely, 

James P. Turner 

Acting Assistant Attorney General 

Civil Rights Division 



By: 



Barry II. Weinberg 
Acting Chief, Voting Section 



NOR TH CAROLINA REGIS TER 6 1 9 



PROPOSED RULES 



TITLE 10 DEPARTMENT OF HUMAN 
RESOURCES 

1\ otice is hereby given in accordance with G.S. 
150B-12 that the Department of Human 
Resources Division of Medical Assistance intends 
to repeal rule(s) cited as 10 SCAC 2611 .0102 - 
.0107, .020/ - .020S, .0301 - .0304, .0401 - .0403, 
.0502 - .0507, .0601 - .0605. 

1 he proposed effective date of this action is 
January 1. 1990. 



Th 



he public hearing will be conducted at 1:30 
p.m. on October 16. 19S9 at North Carolina Divi- 
sion of Medical Assistance, 19S5 Urns lead Drive, 
Room 201, Raleigh, North Carolina 27603. 



Cc 



omment Procedures: Written comments con- 
cerning these repeals must be submitted by Octo- 
ber 16, I9S9 to: Director, Dhision of Medical 
Assistance. 19S5 U instead Drive, Raleigh, N.C. 
27603. Oral comments presented at the hearing 
should be limited to a maximum of ten minutes 
duration. Submittal of written copies of oral 
statements is encouraged. In addition, a fiscal 
impact statement of these proposed rule repeals is 
available upon written request from the same ad- 
dress. 

CHAPTER 26 - MEDICAL ASSISTANCE 

SUBCHAPTER 2611 - REIMBURSEMENT PLANS 

SECTION .0100 - REIMBURSEMENT FOR 

SKILLED NURSING FACILITY AND 

INTERMEDIATE CARL FACILITY SERYICES 

.0102 RATE SETTING METHODS 

(REPEALED) 
.0103 REASONABLE AND NON-ALLOWABLE 

COSTS (REPEALED) 
.0104 COST REPORTING: AUDITING AND 

SETTLEMENTS (REPEALED) 
.0105 RETURN ON EQUITY (REPEALED) 
.0106 APPEALS (REPEALED) 

Authority G.S. 10SA-25(b); 10SA-54: 108A-55; 
150B-II: S.L. I9S5, c. 479, s. 86; 42 C.F.R. 447, 
Subpart C. 

.0107 PAYMENT ASSURANCE (REPEALED) 

Authority G.S. 108A-25(b); IOSA-54; 108A-55; 
S.L. 1985, c. 4~9, s. 86; 42 C.F.R. 447, Subpart 
C. 

SECTION .0200 - HOSPITAL INPATIENT 
REIMBURSEMENT PLAN (REPEALED) 



.0201 REIMBURSEMENT PRINCIPLES 

.0202 RATE SETTING METHODS 

.0203 COST REPORTING AND AUDITING 

.0204 ADMINISTRATIVE APPEALS 

.0205 PAYMENT FOR LOWER THAN ACUTE 

LEVEL OF CARE 

.0206 PAYMENT ASSURANCE 

.0207 PROVIDER PARTICIPATION 

.0208 PAYMENT IN FELL 

Authority G.S. l08A-25(b); 108A-54; 108A-55; 
150B-I I: S.L. 1985, c. 479, s. 86; 42 C.F.R. 447, 
Subpart C. 

SECTION .0300 - ICF-MR PROSPECTIVE RATE 
PLAN (REPEALED.) 

.0301 REIMBURSEMENT AMOUNTS 
.0302 ALLOWABLE COST FINDING: 

REPORTING AND VERIFICATION 
.0303 METHODS AND STANDARDS FOR 

DETERMINING RATES 

Authority G.S. 108A-25(b); 108A-54; 10SA-55; 
S.L. 1985, c. 479, s. 86; 42 C.F.R. Part 447, 
Subpart C. 

.0304 PROVIDER APPEALS 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 
1 SOB- 11; S.L. 1985. c. 479, s. 86; 42 C.F.R. Part 
447, Subpart C. 

SECTION .0400 - PROVIDER FEE SCHEDULES 
(REPEALED) 

.0401 PHYSICIAN FEE SCHEDULE 
.0402 DENTIST FEE SCHEDULE 
.0403 CHIROPRACTOR: OPTOMETRY: 
PODIATRY FEE SCHEDULE 

Statutory Authority G.S. !08A-25(b); S.L. 1985, 
c. 479, s. 86. 

SECTION .0500 - REIMBURSEMENT FOR 
SERVICES 

.0502 CLINIC SERVICES (REPEALED) 
.0503 MENTAL HEALTH CLINIC SERVICES 
(REPEALED) 

Statutory Authority G.S. 108A-25(b); S.L. 1985, 
c. 479, s. 86. 

.0504 INPATIENT HOSPITAL: 

INAPPROPRIATE LEVEL OF CARE 
(REPEALED) 

Authority G.S. 108A-25(b); 42 C.F.R. 447.253; 
S.L. 1985, c. 479, s. 86. 



620 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



.0505 HEALTH MAINTENANCE 

ORGANIZATIONS AM) PREPAID 
HEALTH PLANS (REPEALED) 

Authority G.S. l08A-25(b); S.L. 1985, c. 479, s. 
86; 42 C.F.R. Part 434. 

.0506 PERSONAL CARE SERVICES 
(REPEALED) 

Authority G.S. l08A-25(b); I08A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 C.F.R. 440.170(f). 

.0507 INDEPENDENT LABORATORY 
SERVICES (REPEALED) 

Statutory Authority G.S. 108A-25(b); I08A-54; 
108A-55; P.L. 93-369; P.L. 99-272; 42 C.F.R. 
447.10; 42 C.F.R. 447.342. 

SECTION .0600 - HOME HEALTH 

PROSPECTIVE REIMBURSEMENT 

(REPEALED) 

.0601 REIMBURSEMENT PRINCIPLES 

.0602 REIMBURSEMENT METHODS 

.0603 APPEALS 

.0604 COST REPORTING AM) AUDITING 

.0605 PAYMENT ASSURANCES 

Authority G. S. !08A-25(b): I0SA-54; 10SA-55; 
S. L. 1985, c. 479, s. 86; 42 C.F.R. 440.70. 

TITLE 12 DEPARTMENT OF JUSTICE 



IVotice is hereby given in accordance with G.S. 
1 SOB- 12 that the N.C. Private Protective Services 
Board intends to amend rules cited as 12 NCAC 
7D .0301, .0401, .0701, .0706, .0801, .0803, .0806, 
.0807, .0809; and adopt ride cited as 1 2 NCAC 
7D .0707. 

1 he proposed effective date of this action is 
January I, 1990. 

1 he public hearing will be conducted at 12:00 
p.m. on October 20, 1989 at McKimmon Center, 
Gorman Street at Western Blvd., Raleigh, N.C. 

Comment Procedures: All written comments 
must be filed with the Board's administrator no 
later than 5:00 p.m. on October 13, 1989 at P.O. 
Box 29500, Raleigh, N.C. 27626. Anyone wishing 
to make oral comments must contact the Admin- 
istrator by 5:00 p.m. on October 13, 1989. in order 
to be placed on the agenda. The Administrator 
can be reached at (919) 779-1611. 



CHAPTER 7 - PRIVATE PROTECTIVE 
SERVICES 

SUBCHAPTER 7D - PRIVATE PROTECTION 
SERVICES BOARD 

SECTION .0300 - SECURITY GUARD AND 
PATROL: GUARD DOG SERVICE 

.0301 EXPERIENCE REQUIREMENTS/ 
SECURITY GUARD AND PATROL 
LICENSE 

(a) In addition to the requirements of 12 
NCAC 7D .0200, applicants for a security guard 
and patrol license shall: 

(1) establish to the Board's satisfaction three 
years experience within the past five years 
as a manager, supervisor, or administrator 
with a contract security company or a 
proprietary security organization per- 
forming guard and patrol functions; or 

(2) establish to the Board's satisfaction three 
years experience within the past five years 
as a manager, supervisor, or administrator 
in security with any federal, U.S. Armed 
Forces, state, county, or municipal law 
enforcement agency performing guard and 
patrol functions. 

(b) The Board may give up to two years credit 
toward the experience requirements set forth in 
(a)(1) and (2) of this Rule as follows: 

( 1) one year of credit for a two year Associate 
Degree in Security, Criminal Justice or the 
equivalent conferred by an accredited 
technical institute, college or university; 

(2) one year of credit for a Bachelor's Degree 
in Business or Economics or the equiv- 
alent conferred by an accredited college 
or university; or 

(3) two years of credit for a Bachelor's Degree, 

Masters Degree or Doctorate in Security 
or Criminal Justice or the equivalent con- 
ferred by an accredited college or univer- 
sity. 

(c) Persons licensed under Chapter 74D of the 
General Statutes of North Carolina, may be is- 
sued a limited guard and patrol license exclusively 
for providing armed alarm respondcrs. Appli- 
cants for such a limited license shall not be re- 
quired to meet the experience requirements of 12 
NCAC 7D .0302. Any experience gained under 
this limited license shall not be counted as expe- 
rience for a full guard and patrol license. All 
armed respondcrs shall be registered with the 
Board. 

Statutory Authority G.S. 74C-8; 74C-/3. 



NORTH CAROLINA REGISTER 



621 



PROPOSED RULES 



SECTION .04(10 - PRIVATE INVESTIGATOR: 
COUNTERINTELLIGENCE 

.0401 EXPERIENCE REQUIREMENTS FOR A 
PRIVATE INVESTIGATOR LICENSE 

(a) In addition to the requirements of G.S. 
74C-8 and 12 NCAC 7D .0200, applicants for a 
private investigator license shall: meet tho Fe- 
quirements t-4" &Sr Chapt e r 71C 8(d)(3). 

( 1) establish to the Board's satisfaction three 
years of acceptable experience within the 
past five years while satisfactorily con- 
ducting investigations as defined in (j.S. 
74C-3(a)(N) with a contract security com- 
pany or with a private person, firm, asso- 
ciation or corporation; or 

(2) establish to the Board's satisfaction three 
\ ears of acceptable experience within the 
past five years while satisfactorily con- 
ducting investigations as defined in G.S. 



74C-3(a)( S) while serving in an investi- 



gative capacity as defined in J_2 NCAC 7D 
■ 0K)4(')) with any Federal. IS. Armed 
forces, state, county, municipal law en- 
forcement agency or other governmental 
agency. 



(b) The Board may give up to two years credit 
toward the experience requirements set forth in 
(a) of this Rule as follows: 

( 1) one year of credit for a two year Associate 
Degree in Security. Criminal Justice or the 
equivalent conferred by an accredited 
technical institute, college or university; 

(2) one year of credit for a Bachelor's Degree 
in Business or Economics or the equiv- 
alent conferred by an accredited college 
or university; or 

(3) two years of credit for a Bachelor's Degree 
in Security or Criminal Justice or the 
equivalent conferred by an accredited col- 
lege or university. 

(c) Time spent teaching police science subjects 
at a post-secondary educational institution ( such 
as a community college, college or university) 
shall toll the time for the minimum vcar require- 
ments in 12 NCAC 71) .0401(a). For the pur- 
poses of this Section, "toll" means that the 
experience gained by an applicant immediately 
prior to beginning teaching shall not be discred- 
ited. "Toll" shall not mean that credit is given 
tor teaching police science subjects. 

Statutory Authority G.S. 74C-5(2). 

SECTION .0700 - SECURITY GUARD 
REGISTRATION (UNARMED) 

.0701 APPLICATION FOR UNARMED 

SECURITY GUARD REGISTRATION 



(a) Each employer or his designee shall submit 
and sign an application form for the registration 
of each employee to the Board. This form shall 
be accompanied by: 

( 1 ) one set of classifiable fingerprints on an 
applicant fingerprint card; 

(2) two recent head and shoulders color pho- 
tographs of the applicant of acceptable 
quality for identification, one inch by one 
inch in size; 

(3) statements of the result trf a local criminal 
history records search by ttw» city county 
identification bureau t» clerk ef superior 
court h+ each county any criminal record 
obtained from the appropriate authority 
in each area where the applicant has re- 
sided within the immediate preceding 48 
months; and 

(4) the applicant's non-refundable registration 
fee. 

(b) The employer of each applicant for regis- 
tration shall give the applicant a copy of the ap- 
plication and shall retain a copy of the 
application in the individual's personnel file in 
the employer's office. 

(c) The applicant's copy of the application shall 
serve as a temporary registration card which shall 
be carried by the applicant when he is within the 
scope of his employment and which shall be ex- 
hibited upon the request of any law enforcement 
officer or other authorized representative of the 
Board. 

(d) A statement signed hv a certified trainer 
that the applicant has successfully completed the 
training requirements of j_2 NCAC 7D .0707 
shall be submitted to the Administrator not later 



than 70 days from the hiring of an unarmed se- 
curity guard. 

Statutory Authority G.S. ~4C-5; 74C-1 1; 74C-I3. 

.0706 RENEWAL OR REISSUE OF 

UNARMED SECURITY GUARD 
REGISTRATION 

(a) Each applicant for renewal of a registration 
identification card or his employer, shall com- 
plete a form provided by the Board. This form 
should be submitted not less than 30 days prior 
to the expiration of the applicant's current regis- 
tration and shall be accompanied by: 

( 1 ) two recent head and shoulders color pho- 
tographs of the applicant of acceptable 
quality for identification, one inch by one 
inch in size; 

(2) statements of thr* result e£ » local criminal 
history records search by- thu city county 
identification bur e au **f clerk ef superior 
court » e ach countv anv criminal record 



622 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



obtained from the appropriate authority 
in each area where the applicant has re- 
sided within the immediate preceding 12 
months; and 
(3) the applicant's renewal fee. 

(b) Each applicant for reissue of a registration 
identification card shall complete, and his em- 
ployer shall sign a form provided by the Board. 
This form shall be submitted to the Hoard and 
accompanied by: 

(1) two recent head and shoulders color pho- 
tographs of the applicant of acceptable 
quality for identification, one inch by one 
inch in size; and 

(2) the applicant's reissue fee. 

(c) The employer of each applicant for a regis- 
tration renewal or reissue shall give the applicant 
a copy of the application which will serve as a 
record of application for renewal pr reissue and 
shall retain a copy of the application in the indi- 
vidual's personnel file in the employer's office. 

Statutory Authority G.S. 74C-1 1. 

.0707 TRAINING REQUIREMENTS FOR 
UNARMED SECURITY GUARDS 

(a) Applicants for an unarmed security guard 
registration shall complete a basic training course 
for unarmed security guards within 60 days from 
hire consisting of a minimum of four hours of 
classroom instruction including: 

(1) Chapter 74C of the General Statutes; 

(2) report writing; 

(3) legal aspects of an unarmed security guard; 

(4) controlled substance identification and 
handling; and 

(5) deportment. 

(b) Licensees shall submit the name and re- 
sume for a proposed certified unarmed security 
guard trainer to the Administrator for Board ap- 
proval. 

(c) Training shall be conducted by a Board 
approved certified unarmed security guard 
trainer. A Board approved lesson plan and 
training video covering the training requirements 
in 12 NCAC 7D .0707(a) will be made available 
to each trainer. 

(d) These provisions shall not apply to: 

(1) temporary unarmed security guards as de- 
fined by G.S. 74C- 11(f); and 

(2) any unarmed security guard registered with 
the Board on January 1, 1990. 

Statutory Authority G.S. 74C-II(f); 74C-I3(m). 

SECTION .0800 - ARMED SECURITY GUARD 
FIREARM REGISTRATION PERMIT 

.0801 APPLICATION FOR ARMED 



SECURITY GUARD FIREARM 
REGISTRATION PERMIT 

(a) Each employer or his designee shall submit 
and sign an application form for the registration 
of each employee to the Board. This form shall 
be accompanied by: 

(1) one set of classifiable fingerprints on an 
applicant fingerprint card; 

(2) two recent head and shoulders color pho- 
tographs of the applicant of acceptable 
quality for identification, one inch by one 
inch in size; 

(3) statements of the r e sult &f a local criminal 
history records search by- &# city county 
identification bureau e* clerk ef superior 
court i» each county any criminal record 
obtained from the appropriate authority 
in each area where the applicant has re- 
sided within the immediate preceding 48 
months; 

(4) the applicant's non-refundable registration 
fee; and 

(5) a statement signed by a certified trainer 
that the applicant has successfully com- 
pleted the training requirements of 12 
N.C.A.C. 7D .0807. 

(b) The employer of each applicant for regis- 
tration shall give the applicant a copy of the ap- 
plication and shall retain a copy of the 
application in the individual's personnel file in 
the employer's office. 

(c) The applicant's copy of the application shall 
serve as a temporary registration card which shall 
be carried by the applicant when he is within the 
scope of his employment and which shall be ex- 
hibited upon the request of any law enforcement 
officer or other authorized representative of the 
Board. 

(d) Applications submitted without firearms 
certificates shall not serve as temporary registra- 
tion cards unless the contract security company 
or proprietary security organization has obtained 
prior approval from the administrator and pro- 
vides satisfactory proof that the applicant has re- 
ceived prior firearms training. 

(e) The provisions of (a), (b), and (c) of this 
Rule shall also apply to any employee whose 
employment is terminated within 30 days of em- 
ployment. 

Statutory Authority G.S. 74C-5; 74C-13. 

.0803 MINIMUM STANDARDS FOR ARMED 
SECURITY GUARD FIREARM 
REGISTRATION PERMIT 

Applicants for an armed security offic e r guard 
registration shall meet all the requirements of 12 
NCAC 7D .0703. 



NORTH CAROLINA REGISTER 



623 



PROPOSED RULES 



Statutory Authority G.S. 74C-5; 74C-I3. 

.0806 RENEWAL OF ARMED SECURITY 
GUARD FIREARM REGISTRATION 
PERMIT 

(a) Each applicant for renewal of a an armed 
security guard firearm registration permit iden- 
tification card or his employer shall complete a 
form pro\ided by the Board. This form shall be 
submitted not more than 90 days nor less than 
30 days prior to expiration of the applicant's 
current armed registration and shall be accom- 
panied by: 

( 1 ) two recent head and shoulders color pho- 
tographs of the applicant of acceptable 
quality for identification, one inch by one 
inch in size; 

(2) statements of the result t»f a local criminal 
hi '. tor/ n'cordo search by the city county 
identification bureau &f clerk ef- superior 
co ml h* each county any criminal record 
obtained from the appropriate area where 
the applicant has resided within the im- 
mediate preceding 12 months; and 

(3) the applicant's renewal fee. 

(b) The employer of each applicant for a reg- 
istration renewal shall give the applicant a copy 
of the application which will serve as a record of 
application for renewal and shall retain a copy 
of the application in the individual's personnel 
file in the employer's office. 

(c) Applications for renewal shall be accompa- 
nied by a statement signed by a certified trainer 
that the applicant has successfully completed the 
training requirements of 12 NCAC 7D .0807. 

Statutory Authority G.S. 74C-5; 74C-1I; 74C-13. 

.0807 TRAINING REQUIREMENTS FOR 
ARMED SECURITY GUARDS 

(a) Applicants for an armed security officer 
guard firearm registration permit shall complete 
a basic training course for armed security officers 
guards which consists of a minimum of four 
hours of classroom instruction including: 

( 1 ) legal limitations on the use of handguns 
and on the powers and authority of an 
armed security officer: guard; 

(2) familiarity with rules and regulations re- 
lating to armed security officers: guards; 

(3) range firing procedures, handgun safety, 
and maintenance; and 

(4 1 any other topics of armed security officer 
guard training which the Board and the 
Attorney General deem necessary. 

(b) Applicants shall attain a 70 percent score 
on a firearms course approved by the Board and 



the Attorney General, a copy of which is on file 
in the administrator's office. 

(c) All armed security officer guard training re- 
quired by 12 NCAC 7D shall be administered by 
a certified trainer and shall be successfully com- 
pleted no more than 90 days prior to the date of 
issuance of the armed security officer guard fir- 
earm registration permit. 

Statutory Authority G.S. 74C-5; 74C-I3. 

.0809 AUTHORIZED FIREARMS 

Armed security officers guards are authorized, 
while in the performance of official duties or 
traveling directly to and from work, to carry a 
standard .38 caliber, .32 caliber or .357 caliber 
revolver or any standard 12 gauge shotgun. 

Statutory Authority G.S. 74C-5; 74C-13. 

TITLE 25 - OFFICE OF STATE 
PERSONNEL 

iV otice is hereby given in accordance with G.S. 
1 SOB- 12 that the Office of State Personnel; State 
Personnel Commission intends to adopt rule(s) 
cited as 25 SCAC IB .0435 - .0436; 25 XCAC 
ID .0211 - .0213, .0308, .0406. .0608 - .06/0. 
.0706 - .0710. .0808. .0910 - .0911: 25 SCAC ID 
.1122 - .1128; 25 XCAC I.I .0901 - .0903; 25 
SCAC IK .0612 - .061 3; 25 SCAC lO .0101. 
.0201 - .0206, .0301 - .0305; amend rule(s) cited 
as 25 SCAC 1C .0211; 25 SCAC ID .0101 - 
.0103, .0210, .0303. .0511. .0605. .0705. .0801, 
.0901, .0906, .0908; and intends to repeal rule(s) 
cited as 25 SCAC ID .0/08, .0202 - .0204, .0302, 
.0304, .0402, .0404, .0601 - .0603, .0606, .0702, 
.0802 - .0803, .0806. .0904 - .0905. .1101 - .1106, 
.1108 - .1109, .1115. .1117 - .1120; 25 SCAC IE 
.0501 - .0504, .0506 - .05/1. 

1 he proposed effective date of this action is 
January I, 1990. 

1 he public hearing will be conducted at 9:00 
a.m. on October 17, 1989 at Stale Personnel 
Center, 101 W. Peace Street, Raleigh, S.C. 



Cc 



omtnent Procedures: Interested persons may 
present statements orally or in writing at the 
hearing or in writing prior to the hearing by mail 
addressed to: Drake Maynard, Office of State 
Personnel, 1 16 W. Jones Street. Raleigh, S.C. 
27603. 

CHAPTER I - OFFICE OF STATE PERSONNEL 



624 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



SUBCHAPTER IB -STATE PERSONNEL 

COMMISSION 

SECTION .0400 - APPEAL TO COMMISSION 

.0435 REMEDIES: SALARY ADJUSTMENTS 

(a) No department, agency or institution may 
use within-gradc salary adjustments as a method 
of resolving any grievance, contested case or 
lawsuit without advance notice to the Office of 
State Personnel and the specific, written approval 
of the State Personnel Director and the State 
Personnel Commission. The only exception 
shall be such an adjustment in the context of a 
front pay award ordered by the State Personnel 
Commission pursuant to 25 NCAC IB .0422. 

(b) Any within-grade salary adjustment pro- 
posed to be approved by the State Personnel 
Director and the State Personnel Commission 
must be in compliance with existing salary ad- 
ministration policies (see 25 NCAC ID .0100 ct 
scq) or shall have prior approval as an exception 
to or waiver from such policies in accordance 
with 25 NCAC 1A .0004. 

Statutory Authority G.S. 126-4(2). 

.0436 SETTLEMENTS AND CONSENT 
AGREEMENTS IN GRIEVANCES, 
CONTESTED CASES 

(a) Any settlement or consent agreement in a 
grievance or contested case which requires the 
approval and/or processing of personnel action 
forms by the Office of State Personnel must be 
approved by the Office of State Personnel and 
the State Personnel Commission before such 
personnel action forms will be processed. Ap- 
proval by the Office of State Personnel shall be 
indicated by the signature of the State Personnel 
Director or his designee in an appropriate place 
on the settlement or consent agreement. This 
provision shall not be construed to require Office 
of State Personnel approval of a settlement in 
which the only portion requiring approval is the 
awarding of attorney's fees to the employee's at- 
torney by the State Personnel Commission. 

(b) The provisions of 25 NCAC 1A .0004 
(EXCEPTIONS AND VARIANCES) must be 
complied with when any provision of a settle- 
ment or consent agreement in a grievance or 
contested case requires an exception to or vari- 
ance from existing personnel policy. This com- 
pliance shall be in addition to the requirements 
of this Rule. 

(c) Personnel action forms, required by the 
provisions of any settlement or consent agree- 
ment which has not been approved by the Office 
of State Personnel and the State Personnel 
Commission as required by this Rule, shall not 



be processed by the Office of State Personnel and 
shall be returned to the agency without action. 

(d) Any settlement or consent agreement which 
does not require action by the Office of State 
Personnel or the State Personnel Commission 
docs not require the approval of cither body to 
be effective. 

Statutory Authority G.S. 126-4. 

SUBCHAPTER IC - PERSONNEL 
ADMINISTRATION 

SECTION .0200 - GENERAL EMPLOYMENT 
POLICIES 

.0211 PERSONAL PROTECTIVE EQUIPMENT 

Effective May 1, 1976, the state will furnish, at 
no cost to the employee, certain personal pro- 
tective equipment as required by the North Ca- 
rolina Occupational Safety and Health Act of 
1973. The State's responsibility is noted in each 
category listed below: 

EQUIPMENT GLIDE 

(10) Foot Protection 
(a) Safety Shoes For employees who are 
required to wear safety 
shoes, under the pro- 
visions of the N.C. Oc- 
cupational Safetv and 
Health Act of 1973, the 
state will reimburse the 
employee for the pur- 
chase cost not to exceed 
forty dollars ($10.00) fiE 
tv-four dollars ($54.00) 
for one pair of shoes per 
year. The employee 
may purchase shoes 
personally and be reim- 
bursed or an agency 
may supply shoes under 
the rules and regulations 
of the State Purchase 
and Contract Division 
not to exceed a unit cost 
of forty dollars ($ 10.00) 
fiftv-four dollars 

($54.00). If the em- 
ployee is personally re- 
imbursed, Forms 
BD-403 with attached 
receipt shall be used. 

Statutory Authority G.S. 126-4. 

SUBCHAPTER ID - COMPENSATION 



NORTH CAROLINA REGISTER 



625 



PROPOSED RULES 



SKCTION .0100 



UAIIMSTRATION OF THE 
PAY PLAN 



.0101 COMPENSATION PLAN 

[a) h is the policy of the stale to compensate 
its employee s at a level sufficient to encourage 
excellence oi performance and to maintain the 
labor market competitiveness necessary to recruit 
and retain a competent work force. To this end, 
and in accordance with the State Personnel Act. 
the State Personnel Commission shall conduct 
compensations survey s to determine the 



percent o[ lunds appropnated for salary increases 
to be reserve d for a general increase for all state 
employe s and the percent to be reserved for 
performance- based increases for eligible employ- 
ee- 
lb) A compensation plan is maintained which 
provides a salary rate structure or structures ade- 
quate to appropriately compensate all positions 
subject to the State Personnel Act. This struc- 
ture may be revised in composition, or the total 
structure moved upyvard or downward, in re- 
sponse to labor market trends and to legislative 
actions affecting salaries: such action is depend- 
ent on the availability of funds. 

Statutory Authority G.S. 126-4. 

.0102 S \\ \R\ K VNGES 

(a) leach classified position is assigned to a sal- 
ary range that provides, based on similar em- 
ployment in the defined labor market: 
minimum, intermediate and maximum salary 
rates that are competitive yvith rates in the ex- 
ternal labor market consistent yvith the state's 
ability to pay: and proper relationships \\ ithin 
state government employment to maintain inter- 
nal equity. 

(h) Based on labor market demands, salary 
rates for some classifications may be approved 
above the standard rates When a higher salary 
ranee (i.e .. both the minimums and maximums 
are raised 1 is needed to recruit employees to cer- 
tain areas o[ the state, the higher range) s) will be 
knoyy n as geographic differentials. When only 
the entry rates land not the maximums) need to 
be higher, the higher rates will be knoyvn as spe- 



cial entn rates Special entrv rates may be ap- 
proved on a geographic basis also. 

(c) When geographic differentials are in effect, 
all salan administration policies arc applied as if 
the classification yvere at the higher grade. Pro- 
visions tor applying special entn rates are in- 
eluded in each policy 

Statutory Authority G.S. 126-4. 

.0103 STATE SALARY SCHEDULE 



Annual salary ranges shoyving at least the mini- 
mum and maximum w+4 intc - rmc - dmtc - steps pay- 
rates for each job classification subject to the 
State Personnel Act are filed in the Office of State 
Personnel and in the personnel office of each 
state department and institution. Information 
on current salaries may be obtained at these lo- 
cations. The salary schedule is adopted by ref- 
erence October 1. 19S4. 

Statutory Authority G.S. 126-4(2): 1 SOB- 14. 

.0108 AVAILABILITY OF FUNDS 
(REPEALED) 

Statutory Authority G.S. 126-4. 

SECTION .0200 - NEW APPOINTMENTS 

.0202 HIRING RATE (REPEALED) 
.0203 JUSTIFICATION (REPEALED) 
.0204 TEMPORARY OR PART-TIME 
EMPLOYEES (REPEALED) 

Statutory Authority G.S. 126-4. 

.0210 TRAINEE SAUARY ADJUSTMENTS 

During a trainee appointment, an evaluation of 
the individual's performance and progress on the 
job is to be made at frequent intervals. As a 
general guide, salary' increases are provided at 
specified intervals. These increases are not au- 
tomatic and are not necessarily limited to the full 
elapse of specified intervals. Salary' adjustments 
may be either advanced or delayed depending 
upon the progress of the employee. In cases 
where salary adjustments have been advanced, 
normally the trainee's salary will not be adjusted 
to £k*f» t*fH» the minimum rate of the range for the 
regular classification until the employee meets all 
education and expenence requirements for the 
appointment; the salary' can be moved to the re- 
gular class rate only when job performance dem- 
onstrates achievement of duties, knoyvledges. and 
skills at the level of the class as verified by indi- 
vidual job audit. Adjustments are to be given 
upon recommendation by the appointing au- 
thority and the supervisor that the employee has 
earned an increase. 

Statutory Authority G.S. 126-4. 

.0211 SALARY RATE 

(a) The hiring rate of pay for a class, or trainee 
rate where applicable, shall normally be paid a 
qualified neyv employee. When a special entry' 
rate has been authorized, that rate may be paid 
a qualified neyv employee if the agency has made 
a decision to use the neyv rate. 



626 



XORTH CAROLISA REGISTER 



PROPOSED RULES 



(2) 



(c) 



(b) It is intended that agencies make as few 
appointments above the hiring rate (or applicable 
special entry rate) as possible. Rates above this 
may be requested when: 

(1) extensive recruitment efforts have not 
produced qualified applicants; or 
the applicant possesses exceptional quali- 
fications above the hiring requirements of 
the class specification, and operational 
needs exist which justify filling the posi- 
tion at the salary above the minimum of 
the range. The additional experience and 
training must be in the same or closely 
related area to that stated as acceptable in 
the class specification. Generally, up to 
five percent may be considered for each 
qualifying year of experience above the 
minimum requirements. 
Appointments above the hiring rate are to 
be avoided if salary inequities would be created. 
This should be considered very carefully in order 
to avoid present or future inequities. One con- 
sideration must be the policy which would apply 
if a current employee were promoted to a va- 
cancy. A serious inequity can occur if a new 
employee is paid at a rate higher than that which 
would be paid if a current employee were pro- 
moted to the same position. 

(d) When an employee is given permanent 
status after successful completion of either the 
probationary period or the trainee period, the 
employee's salary shall be increased to the per- 
manent rate of the range (unless appointment 
was made at or above this level). The effective 
date for change to permanent status must be the 
first day of a pay period. If the employee is in 
pay status for at least one-half of the workdays 
and holidays in the pay period, credit will be 
given for the full pay period. 

(e) If the employee is hired initially at an au- 
thorized special entry rate, the employee's salary 
may be increased by five percent above the spe- 
cial entry rate upon successful completion of the 
probationary period. 

(f) If the employee is hired at a salary below 
an authorized special entry rate because the lower 
salary is sufficient to attract applicants but not 
sufficient to retain the employee once experience 
is gained, an adjustment up to the special entry 
rate may be made during or at the end of the 
probationary period or at such time as perform- 
ance indicates that it is justified. 

Statutoiy Authority G.S. 126-4. 

.0212 JUSTIFICATION 



(a) Forms PD-105 requesting appointments at 
rates above the hiring rate must include a state- 
ment of reasons and justification for such rates. 

(b) If conditions justify appointment above the 
hiring rate, the agency may elect to use the hiring 
rate for initial appointment with the option to 
increase the salary' to a rate above the hiring rate 
upon successful completion of the probationary 
period. 

Statutory Authority G.S. 126-4. 

.0213 TEMPORARY AND PART-TIME 
EMPLOYEES 

(a) The hiring rate shall normally be paid tem- 
porary employees. However, a lower rate may 
be set if reasons are acceptable to the Office of 
State Personnel. Temporary employees shall be 
paid hourly rates. 

(b) Employees with permanent part-time ap- 
pointments shall be paid a proportionate annual 
rate. 

Statutory Authority G.S. 126-4. 

SECTION .0300 - PROMOTION 

.0302 SALARY RATE (REPEALED) 

Statutory Authority G.S. 126-4. 

.0303 EFFECTIVE DATE 

(a) Permanent promotions shall be made ef- 
fective on the first day of the pay period. Such 
requests cannot be made effective earlier than the 
first day of the foUowing month when received 
after the tenth of the month. 

(b) The required promotional increase shall be 
given on the effective date of the promotion. 

(c) If the desired amount of increase is not 
given on the effective date of the promotion be- 
cause of unavailable funds or equity consider- 
ations, an additional incrcasc(s) up to the full 
allowable amount may be given M a later date(s) 
on a current basis. Additional increases are lim- 
ited to two occurrences and must be awarded 
within 24 months of the original effective date of 
the action. If a subsequent promotion, reallo- 
cation or demotion occurs, this cancels the au- 
thorization to grant additional increases as a 
result of the previous promotion. If increases are 
to be given at_ later dates, a notation must be en- 
tered on the form stating the reason the increase 
is being delayed and showing the amount of the 
allowable increase, the amount given, and the 
balance that may be given later. The personnel 
actions submitted later must reference the ori- 
ginal promotion. 



NORTH CAROLINA REGISTER 



627 



PROPOSED RULES 



(d) If no additional increase is to be given at a 
later Jate. no notation is necessary. 



(e) Temporary promotions may be made ef- 
fective on the date that an employee is ofticiallv 
placed in an "acting" capacity. 

Statutory Authority G.S. 126-4. 

.0304 PERFORMANCE INCREASE 

ANNIVERSARY DATE (REPEALED) 

Statutory Authority G.S. 126-4. 

.0308 SALARY INCREASES 

The purpose of a promotional pay increase is 
to reward the employee for the assumption of 
duties more responsible and more difficult than 
those in the current position. Subject to the 
availability of funds, salary' increases, not to ex- 
ceed the maximum of the range, may be given in 
accordance with the following: 

(1) Permanent Promotion: 

(a) The salary' shall be increased to the mini- 
mum rate of the grade to which promoted 
or by five percent, whichever is larger. 
Exceptions: 

(i) When internal salary equity or budget 
considerations in the receiving work unit 
or agency are necessary, and a specific sa- 
lary rate or limitation is published in ad- 
vance of a promotional offer; 

(ii) When an employee is demoted with no 
change in salary and subsequently pro- 
moted back to the same level, the salary 
shall remain unchanged and treated as if 
the demotion had not occurred; 

(iii) If the employee's salary is above the 
maximum as a result of a reallocation 
down, no increase can be given, but the 
salary may remain above the maximum. 

(b) The salary may be increased by more than 
five percent, the total not to exceed five 
percent for each salary grade provided by 
the promotion. The nature and magni- 
tude of the change in jobs, the need to 
maintain equity of salaries within the 
work unit, and other management needs 
must be given consideration when making 
such requests. 

(c) If a probationary employee is promoted 
and the salary is at the hiring rate, the sa- 
lary must be increased to the hiring rate 
of the grade to which promoted until the 
employee is eligible for permanent ap- 
pointment. 

(d) If the employee is to receive a performance 
salary increase on the same date as the 



promotion, the increase may be given be- 
fore the promotional increase. 

(e) Only in extreme, well-documented cir- 
cumstances will salary increases be con- 
sidered which equate to more than five 
percent for each grade provided by the 
promotion. Personnel forms must in- 
clude the justification. 

(f) If an employee is promoted from a class 
for which there is no special entry rate 
into a class which has a special entry rate, 
the employee's salary may be increased 
by the amount of the promotional in- 
crease plus the percent difference between 
the minimum and the special entry rate 
authorization. 

(2) Temporary Promotion: 

(a) Temporary promotions may be made 
when an employee is placed in an 
"acting" capacity for a period of time. 
When an employee is placed in an 
"acting" capacity, at the discretion of 
management, one of the following may 
occur: 

(i) The employee may be placed in the 
higher level position (if vacant) with an 
understanding that he will return to the 
former position and salary when the posi- 
tion is filled. 

(ii) A salary adjustment may be given in the 
present position with the understanding 
that the salary will be decreased when the 
"acting" capacity terminates. Indicate in 
Section 21 of the PD-105 the position 
number and classification for which the 
employee is serving in an "acting" capac- 
ity. Also include expected duration of 
"acting" capacity. 

(b) The provisions for salary increases for 
permanent promotions apply in either 
case, except that the provision for a man- 
datory increase may not be applicable. 

(c) The length of time that an employee is in 
an acting capacity should be limited, and 
the amount of promotional salary increase 
determined by the degree of assumption 
of the higher level duties. 

Statutory Authority G.S. 126-4. 

SECTION .0400 - DEMOTION 

.0402 SALARY RATE (REPEALED) 

Statutory Authority G.S. 126-4. 

.0404 PERFORMANCE INCREASE 

ANNIVERSARY DATE (REPEALED) 



62S 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Statutory Authority G.S. 126-4. 

.0406 SALARY RATE 

(a) When the employee's current salary falls 
within the range of the lower class, it may remain 
the same or be reduced to any salary in the lower 
range. Exception: When an employee is pro- 
moted and subsequently demoted or reassigned 
to any lower class within one year, the salary 
shall revert to the salary being paid before the 
promotion, plus any increases that would have 
been given had that promotion not occurred. 

(b) When the employee's current salary is 
above the maximum of the range for the lower 
class, the salary shall be reduced at least to the 
maximum of the lower range. 

Statutory Authority G.S. 126-4. 

SECTION .0500 - SEPARATION 

.0511 REDUCTION IN FORCE PRIORITY 
CONSIDERATION 

Employees separated through reduction in force 
shall receive priority reemployment consideration 
for a period of twelve months. The following 
conditions apply: 
(4) Eor employees separated from trainee or 
flat-rate positions, who are eligible for pri- 
ority reemployment consideration, the salary 
grade for which priority is to be afforded 
shall be determined as follows. For em- 
ployees in flat-rate positions, the salary grade 
level shall be the salary grade which has as 
its mid-point, (Stop £ft) a rate equal to- 
nearest the flat rate salary of the eligible 
employee. For employees in trainee status 
the salary grade level shall be the salary 
grade of the full class. 

Statutory Authority G.S. 1 '26-4 (6). (10). 

SECTION .0600 - REALLOCATION 



cssing of the requests. Requests received after 
the first day of the month arc subject to be made 
effective no earlier than the first of the following 
month and requests can be effective only after 
complete information is available to make a de- 
cision. If any party is delayed in carrying out its 
responsibilities, the employee should not be 
caused to suffer delay and the effective date will 
be revised to the most reasonable date consistent 
with the time that complete information would 
have been available to make the decision on re- 
allocation of the position. 

(b) Salary adjustments to the minimum rate (or 
hiring, if applicable) shall be given on the effec- 
tive date of the reallocation, jf funds are not 
available, the increase shall be given from the first 
available funds and made retroactive to the ef- 
fective date of the reallocation. Employees who 
are denied increases because of poor performance 
may receive the increase on a current basis 
if when performance becomes satisfactory. 

(c) Salary increases within the range are op- 
tional and, if recommended, should be given on 
the effective date of the reallocation. If the de- 
sired amount of increase is not given on the ef- 
fective date because of unavailable funds, equity 
considerations or performance, the inercase(s), 
up to the full allowable amount, may be given 
at a later date( s ) on a current basis. Total in- 
creases are limite d to three occurrences and must 
be awarded within 24 months of the original ef- 

If a subsequent pro- 
this 



fective date of the action. 



motion, reallocation or demotion occurs, 
cancels the authorization to grant additional in- 
creases as a result of the previous reallocation. 

(d) If increases are to be given al later dates, a 
notation must be entered on the form stating the 
reason the increase is being delayed and showing 
the amount of the allowable increase, the amount 
given, and the balance that may be given later. 
The personnel actions submitted later must ref- 
erence the original reallocation. If no increase is 
to be given at a later date, no notation is ncces- 
sarv. 



.0601 REALLOCATION DEFINED (REPEALED) 
.0602 ASSIGNMENT TO HIGHER GRADE 

(REPEALED) 
.0603 ASSIGNMENT TO A LOWER GRADE 

(REPEALED) 

Statutory Authority G.S. 126-4. 

.0605 EFFECTIVE DATE 

(a) Reallocation shall be made effective on the 
first day of the pay period. Forms PD-118 
should be submitted to the Office of State Per- 
sonnel 30 days prior to the proposed effective 
date to allow adequate time for study and proc- 



Statutory Authority G.S. 126-4. 

.0606 PERFORMANCE INCREASE 

ANNIVERSARY DATE (REPEALED) 

Statutory Authority G.S. 126-4. 

.0608 REALLOCATION 

Reallocation is the assignment of a position to 
a different classification, documented through 
data collection and analysis according to cus- 
tomary professional procedure and approved by 
the State Personnel Director. 



NORTH CAROLINA REGISTER 



629 



PROPOSED RULES 



Statutory Authority G.S. 126-4. 

.0609 REALLOCATION TO A HIGHER GRADE 

When an employee's position is assigned to a 
higher grade as a result of reallocation, subject to 
the availability of funds and satisfactory em- 
ployee performance, salary increases, not to ex- 
ceed the maximum of the range, may be given in 
accordance with the following: 

(1) Salaries at the hiring rate shall be adjusted 
to the new hiring rate. 

(2) Salaries at the minimum rate shall be ad- 
justed to the minimum rate of the new 
range, and may be adjusted further in ac- 
cordance with Paragraph (3) of this Rule. 

(3) Salaries within the range may remain the 
same; or if funds arc available and where 
appropriate, individual salary increases may 
be considered, the total not to exceed five 
percent for each salary grade provided by the 
reallocation. Salary equity within the work 
unit and other management needs must be 
given consideration when making such re- 
quests. 

(4) Only in extreme, well-documented circum- 
stances will salary increases be considered 
which equate to more than five percent for 
each grade provided by the reallocation. 
Personnel tonus must include the justifica- 
tion. 

(5) If the employee is to receive a performance 
salary increase on the same day as the real- 
location, the performance increase may be 
given before a salary adjustment is consid- 
ered. 

Statutory Authority G.S. 126-4. 

.0610 REALLOCATION TO A LOWER GRADE 

(a) When an employee's position is assigned to 
a lower grade, the employee's salary may remain 
the same if it is within the lower range; or it may 
be reduced to any salary in the lower range to 
equitably relate to other employees' salaries in 
the same or related classifications. 

(b) If the employee's salary is above the maxi- 
mum of the grade to which the position is as- 
signed, one of the following options will apply: 

( 1 ) When reduction in level of the position 
results from management decisions on 
program changes, reorganization, or other 
management needs not associated with 
the employee's demonstrated motivation, 
capability, acceptance of responsibility or 
lack of performance, the salary of the em- 
ployee may remain above the new maxi- 
mum as long as the employee remains in 



the same classification or is promoted to 
a higher level position. No further in- 
creases, other than legislative increases, 
may be granted as long as the salary re- 
mains above the maximum. If, however, 
a position is available, the level of which 
would not be as detrimental to the af- 
fected employee, and if the employee is 
qualified but not placed into the position, 
then the option in Paragraph (2) of this 
Rule shall apply. 
(2) When reduction in level of the position 
results from management's removal of 
duties and responsibilities from the em- 
ployee because of change in demonstrated 
motivation, capability, acceptance of re- 
sponsibility, or lack of performance, the 
effect is the same as a demotion and the 
salary must be reduced at least to the 
maximum as required by the policy on 
demotion, 
(c) It is a management responsibility to avoid 
creation of salary inequities among employees. 
Each case must be evaluated to determine which 
of the salary administration alternatives is most 
appropriate, based on the circumstances as doc- 
umented by the employing agency. It is a further 
management responsibility to consider feasible 
alternatives of job design or employee transfer 
which would restore the employee to a position 
at the former grade level in cases not based on 
employee performance. Feasible alternatives are 
dependent upon such factors as organizational 
constraint, program need, and employee quali- 
fications. 

Statutory Authority G.S. 126-4. 

SECT ION .0700 - SALARY RANGE REVISION 

.0702 ASSIGNMENT TO HIGHER GRADE 
(REPEALED) 

Statutory Authority G.S. 126-4. 

.0705 CLASSES DETERMINED NOT LABOR- 
MARKET-COMPETITIVE 

When critical recruitment or employee retention 
problems are officially recognized by the State 
Personnel Director, but salary range revisions are 
not necessary, feasible or practical (i.e., when 
range minimums arc not competitive, but maxi- 
mums arc adequate), the Director may authorize 
a higher special entry rate. J» such eases; to^ 
director H+»y a+s** authoris e agencies, subject to 
t+H* availability el fund -. , to grant in ran go ad- 
justments to present employees a* with a salary 
rang e revision, except toa+ »©■ salary i* allowed 
above the maximum. Priority shall be mven to 



630 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



employees who no oularios afa at &f below ap- 
proved hiring rates aft4 to employees whoso re- 
tention is critical to organisational needs. Salary 
increases shall r+4- be given to employees whoso 
performance does h©4- warrant recognition. 

Statutory Authority G.S. 126-4. 

.0706 ASSIGNMENT TO A HIGHER GRADE 

When an employee's position is assigned to a 
higher grade as a result of salary range revision, 
subject to the availability of funds and satisfac- 
tory employee performance, salary increases, not 
to exceed the maximum of the range, may be 
given in accordance with the following: 

(1) Salaries at the hiring rate shall be adjusted 
to the new hiring rate. 

(2) Salaries at the minimum rate shall be ad- 
justed to the minimum rate of the new 
range, and may be adjusted further in ac- 
cordance with Subparagraph (3) of this 
Rule. 

(3) Salaries within the range may remain the 
same; or if funds are available and where 
appropriate, individual salary adjustments 
may be considered, the total not to exceed 
five percent for each salary grade provided 
by the salary range revision. Salary equity 
within the work unit and other management 
needs must be given consideration when 
making such requests. 

(4) If the employee is to receive a performance 
salary increase on the same day as the salary 
range revision, the increase may be given 
before a salary adjustment is considered. 

(5) When a range revision occurs but the entry 
rate remains the same because of a previ- 
ously existing special entry rate, no addi- 
tional salary increases are allowed if the 
employee received the increase authorized 
by the special entry rate. 

Statutory Authority G.S. 126-4. 

.0707 EFFECTIVE DATE 

(a) Salary increases shall be made effective on 
the first day of the pay period nearest to the ef- 
fective date of the salary range revision. Salary 
increases to the minimum rate (or hiring, if ap- 
plicable) shall be given on the effective date of the 
salary range revision. If funds are not available, 
the increase shall be given from the first available 
funds and made retroactive to the effective date 
of the salary range revision. Employees who are 
denied an adjustment because of poor perform- 
ance may receive the adjustment on a current 
basis if/when performance becomes satisfactory. 



(b) Salary increases within the range are op- 
tional and, if recommended, should be given on 
the effective date of the salary range revision. If 
the desired amount of increase is not given on the 
effective date because of unavailable funds, equity 
considerations or performance, the incrcase(s), 
up to the full allowable amount, may be given 
at a later date(s) on a current basis. Total in- 
creases arc limited to three occurrences and must 
be awarded within 24 months of the original ef- 
fective date of the action. If a subsequent pro- 
motion, reallocation, demotion or salary range 
revision occurs, this cancels the authorization to 
grant additional increases as a result of the pre- 
vious salary range revision. 

(c) If increases are to be given at later dates, a 
notation must be entered on the form stating the 
reason the increase is being delayed and showing 
the amount of the allowable increase, the amount 
given, and the balance that may be given later. 
The personnel actions submitted later must ref- 
erence the original salary range revision. If no 
increase is to be given at a later date, no notation 
is necessary. 

Statutory Authority G.S. 126-4. 

.0708 SALARY ADMINISTRATION: SPECIAL 
ENTRY RATES 

Special entry rates will be announced as a per- 
cent above the hiring rate and as a rate of pay. 
Agencies experiencing recruitment and retention 
difficulties may elect to use the special entry' rates. 
Priority for salary increases shall be given to em- 
ployees whose salaries are at or below special 
entry rates. Salary increases shall not be given 
to employees whose performance is not at a sat- 
isfactory level. Salary increases are not entitle- 
ments and all are subject to the availability of 
funds in the agency budget. When the agency 
decides to use the new rates, the following shall 
apply: 

( 1 ) Salaries may be increased to the special en- 
try rate on the date the agency decides to use 
the new rate. If funds are not available, but 
become available at a later time, increases 
may be retroactive. 

(2) Salaries at or above the special entry rate 
may be increased by the percent authorized 
above the hiring rate. If funds are not 
available, but become available at a later 
time, increases may be made on a current 
basis. Total increases are limited to three 
occurrences and must be awarded within 24 
months of the original effective date of the 
action. If a subsequent reallocation, pro- 
motion or demotion occurs, this cancels the 
authorization to grant additional increases 



NORTH CAROLINA REGISTER 



631 



PROPOSED RULES 



as a result of the special entry rate authori- 
zation. 

(3) If a higher special entry rate is authorized 
for a class that already has a special entry 
rate, the employee may receive an increase 
up to the percent authorized between the 
two special entry rates. 

(4) When a special entry rate authorization 
does not include all classes within a class 
series, consideration for adjustments for 
employees in the class(es) without a special 
entry rate will be on an individual basis. 
Written justification must be submitted with 
such requests. 

Statutory Authority G.S. 126-4. 

.0709 GEOGRAPHIC DIFFERENTIAL 

(a) When critical recruitment or employee re- 
tention problems in a specific location are offi- 
cially recognized by the State Personnel Director, 
but salary range revisions are not necessary, fea- 
sible or practical (i.e., when both minimums and 
maximums are not competitive in a specific lo- 
cation but arc competitive in most locations), the 
Director may authorize a higher salary range for 
those specific locations. 

(b) Geographic differentials will be announced 
as a salary grade above the established salary 
range. Agencies experiencing recruitment and 
retention difficulties may elect to use the ge- 
ographic differential. When geographic differen- 
tials are in effect, salary increases may be granted 
in accordance with the salary range revision pol- 
icies and all salary administration policies are 
applied as if the classification were at the higher 
grade. 

Statutory Authority G.S. 126-4. 

.0710 AVOIDANCE OF SALARY INEQUITIES 

In order to avoid inequities, it is particularly 
important for agency heads to make a study of 
all salaries within an agency and to give careful 
consideration to each individual case before re- 
commending salary increases. 

Statutory Authority G.S. 126-4. 

SECTION .0800 - INITIAL CLASSIFICATION 

.0801 POLICY 

Initial classification occurs in the following sit- 
uations: 
( 1 ) when a position or a group of positions a» 
is classified and brought under the State 
Personnel \ct; 



(2) when a position under the Personnel Act, 
but not officially classified, is reviewed and 
a permanent classification and salary range 
is assigned. 

Statutory Authority G.S. 126-4. 

.0802 RATE BELOW MINIMUM (REPEALED) 
.0803 RAFF WITHIN ASSIGNED RANGE 
(REPEALED) 

Statutory Authority G.S. 126-4. 

.0806 PERFORMANCE INCREASE 

ANNIVERSARY DATE (REPEALED) 

Statutory Authority G.S. 126-4. 

.0808 SALARY RATE 

(a) If the employee is given probationary status 
and the salary is below the hiring rate for the 
range assigned, it shall be adjusted to the new- 
hiring rate. If the employee is given permanent 
status and the salary is below the minimum rate, 
it shall be adjusted to the minimum rate of the 
range assigned. 

(b) If the employee's salary falls within the 
range assigned to the position, it shall remain 
unchanged. 

Statutory Authority G.S. 126-4. 

SECTION .0900 - TRANSFER 

.0901 DEFINITIONS 

(c) Promotions or demotions may occur si- 
multaneously with transfers. 

Statutory Authority G.S. 126-4. 

.0904 SALARY RATE: PERFORMANCE 
INCREASE ANNIVERSARY DATE 
(REPEALED) 

.0905 BENEFITS TRANSFERRED (REPEALED) 

Statutory Authority G.S. 126-4. 

.0906 DETERMINING DATE OF TRANSFER 

(a) If an employee reports to work the first 
workday following separation, the releasing 
agency shall carry the employee on its payroll 
through the day prior to the effective date of the 
transfer even though the separation date may fall 
on a non-workday. An exception may be made 
when the releasing date falls on a non-workday 
at the first of the month, in which case the 
pickup should be made on the first day of the 
month. If other time is involved, such as holi- 
days or approved vacation, the releasing agency 



63 2 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



and the receiving agency shall agree upon who 
will pav the employee. 

Statutory Authority G.S. 126-4. 

.0908 JOB QUALIFICATIONS 

(c) If the transfer is to a lower class and results 
in a demotion or reassignment, Demotion/ Re- 
assignment Policy will t4+e required qualifications 
fof demotion apply. (Sec 25 NCAC ID .0400.) 

Statutory Authority G.S. 126-4. 

.0910 SALARY RATE 

(a) If an employee transfers to a position hav- 
ing the same salary grade, the salary shall remain 
unchanged. (Exception: The salary may be re- 
duced if there is a lack of sufficient funds or if it 
results in the creation of a serious internal salary 
inequity.) 

(b) If the transfer is to a higher class and results 
in a promotion, the Promotion Policy will apply. 
(See 25 NCAC ID .0300.) 

(c) If the transfer is to a lower class and results 
in a demotion or reassignment, the 
Demotion Reassignment Policy will apply. (See 
25 NCAC ID .0400.) 

(d) If an employee is in an agency not utilizing 
an authorized special entry rate and transfers to 
an agency which does, the special entry rate can- 
not be used as justification for a salary increase 
if both work stations are within the same ge- 
ographic area, i.e., Research Triangle. 

(e) If an employee is receiving a higher rate of 
pay by virtue of working in a position to which 
a geographic differential applies and transfers to 
a position to which a geographic differential does 
not apply (whether in the same geographic area 
to a position without a differential, or to the 
same job in a geographic area without a differ- 
ential), the employee's pay rate must be reduced 
by the amount of the differential the employee 
had been receiving. 

Statutory Authority G.S. 126-4. 

.091 1 BENEFITS AMD RECORDS 
TRANSFERRED 

(a) When an employee transfers to another 
agency, all unused sick and vacation leave shall 
be transferred. If the employee transfers to an 
exempt position in which leave will not be cred- 
ited the same as employees subject to the Per- 
sonnel Act, accumulated vacation shall be paid 
for in a lump sum. Accumulated sick leave will 
be transferred. 

(b) The personnel file, as defined by statute, 
shall be transferred to the receiving agency. 



Statutory Authority G.S. 126-4; 126-22. 

SECTION .1 100 - PERFORMANCE SALARY 
INCREASES 

.1101 POLICY (REPEALED) 

.1 102 PERFORMANCE SALARY INCREASES 

BELOW THE THIRD STEP 

(REPEALED) 
.1 103 PERFORMANCE SALARY INCREASES 

AT THIRD STEP OR ABOVE 

(REPEALED) 
.1104 EMPLOYEES ON FLAT RATE 

(REPEALED) 
.1 105 SPECIAL SALARY INCREASES 

(REPEALED) 
.1 106 BASIS FOR AWARDING INCREASES 

(REPEALED) 

Statutory Authority G.S. 126-4; 126-7. 

.1108 COMMUNICATION WITH EMPLOYEES 

(REPEALED) 
.1 109 SALARY INCREASE FUNDS BECOME 

PART OF BASE SALARY (REPEALED) 

Statutory Authority G.S. 126-4; 126-7. 

.1115 COMPUTATION OF FUNDS FOR 
PERFORMANCE INCREASES 
(REPEALED) 

Statutory Authority G.S. 126-4; 126-7. 

.1117 ANNIVERSARY DATES FOR 

EMPLOYEES BELOW STEP THREE 

(REPEALED) 
.1 1 18 REVISION OF ANNIVERSARY DATES 

(REPEALED) 
.1 1 19 NO CHANCE IN ANNIVERSARY DATE 

(REPEALED) 
.1 120 PAYMENT DATES (REPEALED) 

Statutory Authority G.S. 126-4; 126-7. 

.1 122 ANNUAL PERFORMANCE PAY 
COMPENSATION SURVEY 

In accordance with state policy and with the 
State Personnel Act the State Personnel Com- 
mission shall conduct an annual performance pay 
compensation survey. Each year the Commis- 
sion shall present the findings of the survey and 
its performance pay recommendations to the 
Appropriations Committees of the House and 
Senate for inclusion in the state budget. 

Statutory Authority G.S. 126-7. 

.1123 EMPLOYEES COVERED 

The provisions for awarding performance based 
increases shall apply only to employees with 



NORTH CAROLINA REGISTER 



633 



PROPOSED RULES 



permanent full-time or permanent part-time 
(half-time or more) appointment and do not ap- 
ply to employees during trainee or probationary 
periods or to employees at or above the maxi- 
mum of their assigned salary range. 

Statutory Authority G.S. 126-7. 

.1 124 BASIS FOR AWARDING INCREASES 
Each department, agency, or institution must 
have an operative performance management sys- 
tem which has been approved by the Office of 
State Personnel and which includes a summary 
performance appraisal using a rating scale of at 
least five levels, with the top three qualifying for 
performance increases. The complete require- 
ments for an operative performance management 
and appraisal system are defined in Subchapter 
lO, Sections .0100, .0200 and .0300. 

Statutory Authority G.S. 126-7. 

.1125 AMOUNT OF INCREASE 

(a) Each year the Office of State Personnel shall 
set the performance percent increase ranges (mi- 
nimum, midpoint and maximum) allowable for 
each level of performance that exceed perform- 
ance requirements. The performance increase 
ranges will be determined, in part, by the percent 
of total pay roll appropriated for performance 
and general increases and. in part, on labor mar- 
ket practices and the condition of the state's pay 
structure. 

(b) Performance increases shall be distributed 
fairly w ithin work units and across agencies and 
shall be rewarded only for performance that ex- 
ceeds performance requirements. Absent the 
supervisor's written justification, an employee 
whose performance exceeds expectations shall 
receive a percent increase equal to the midpoint 
of the percent range of exceeding performance 
until the employee's salary is at the maximum of 
the range. An employee whose performance 
docs not exceed performance requirements shall 
not receive a performance increase. A supervi- 
sor's performance appraisal plan, evaluation 
standards for each employee, and individual em- 
ployee ratings and recommended performance 
increase amounts, with justification, shall be re- 
viewed and approved by that supervisor's next 
higher level supervisor. 

(c) The level of performance is the primary 
basis for determining whether an employee 
should receive a performance salary increase. 
Examples of acceptable justification for awarding 
a percent increase (higher or lower) other than 
the midpoint of the percent range associated with 
the level of exceeding performance are: 



(1) an employee's value to the organization; 

(2) an employee's placement in the salary 
range versus that for other employees in 
the unit with similar performance; 

(3) the length of time since an employee last 
received a salary increase (promotion, re- 
allocation, and range revision) and the 
amount of the increase; 

(4) the total performance budget available for 
the work unit versus the performance rat- 
ings and salaries of the employees in the 
work unit; 

(5) an employee's performance history. 

(d) The State Personnel Director may suspend 
any performance increase that does not appear 
to meet the intent of the provisions of the per- 
formance pay system and require the originating 
department, agency, or institution to reconsider 
or justify the increase. 

Statutory Authority G.S. 126-7. 

.1 126 PERFORMANCE SALARY INCREASE 
EFFECTIVE DATES 

Performance increases shall be granted on the 
first day of the pay period which includes the first 
day of the month in any of the following months; 
August, November. February and May. The 
performance increase shall be based on the em- 
ployee's performance summary rating for the 
most recent performance appraisal review cycle. 
An employee shall receive a performance ap- 
praisal review at least once during every 12 
month work period. An employee may receive 
more than one performance increase during a 12 
month work period, but the total performance 
increase for a 12 month work period shall not 
exceed the maximum percent set forth in the 
Appropriations Act. 

Statutory Authority G.S. 126-7. 

.1127 LIMITATION ON FUNDS FOR 
PERFORMANCE INCREASE 

(a) The total annual amount of money avail- 
able for performance salary increases for em- 
ployees will be computed by the Office of State 
Budget and Management and communicated to 
each agency. Funds will be computed based on 
annual salaries as of June 30 minus employees 
who are exempt from the State Personnel Act 
and minus employees who are at Step 11B. Sa- 
laries for positions vacant on June 30 are in- 
cluded in the total. 

(b) Each agency shall request a transfer of 
funds to cover all performance salary increases in 
an amount equal to the total funds allocated. 



634 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Statutory Authority G.S. 126-7. 

.1 128 SALARY INCREASE FUNDS BECOME 
PART OF BASE SALARY 

When salary increase funds are granted to an 
eligible employee, such funds immediately be- 
come a part of the employee's base salary; there- 
fore, when an increase is granted, it loses its 
identity. No performance increase reserve can 
be established by turnover once the increase has 
been granted. 

Statutory Authority G.S. 126-7. 

SUBCHAPTER IE - EMPLOYEE BENEFITS 

SECTION .0500 - EDUCATIONAL ASSISTANCE 
PROGRAM 

.0501 PURPOSE (REPEALED) 

.0502 ELIGIBILITY (REPEALED) 

.0503 APPROVED COURSES (REPEALED) 

.0504 APPROVED HOLRS (REPEALED) 

Statutory Authority G.S. 126-4. 

.0506 TUITION ASSISTANCE (REPEALED) 
.0507 APPLICATION PROCEDLRES 

(REPEALED) 
.0508 REIMBURSEMENT (REPEALED) 
.0509 EXCEPTION-COLRSES TAKEN AT 

AGENCY REQUEST (REPEALED) 
.0510 ADMINISTRATION RESPONSIBILITY 

(REPEALED) 
.0511 EXTENDED EDLCATIONAL LEAVE 

(REPEALED) 

Statutory Authority G.S. 126-4. 
SUBCHAPTER IJ - EMPLOYEE RELATIONS 

SECTION .0900 - INTERNAL PERFORMANCE 
PAY DISPUTE RESOLUTION PROCEDLRES 

.0901 OUTSIDE THE ESTABLISHED 

INTERNAL GRIEVANCE PROCEDLRE 

(a) The following are requirements for an ap- 
proved internal performance pay dispute resol- 
ution process which operates separate and apart 
from the existing internal grievance procedure: 

(1) There must be no more than two steps 
involved in the process. 

(2) The final decision in the matter must be 
rendered by the agency head. 

(3) If the matter is to be reviewed by a panel, 
there must be no more than three mem- 
bers on the panel. 

(4) Neither side will be permitted to be re- 
presented by an attorney. 



(5) The proceeding shall not be tape re- 
corded; neither shall any person be re- 
quired to testify under oath. 

(6) Review of and decision in the matter 
must be concluded within 90 calendar 
days from initiation by employee. 

(7) The employee must receive an answer in 
writing from the agency head. 

(8) The employee may speak in his own be- 
half or have someone else (other than an 
attorney) do so. 

(9) The employee must be allowed to appear 
in person either before the panel, a single 
reviewer or before the agency head before 
a final agency decision is rendered. 

(10) The employee may choose not to appear, 
but may have the matter reviewed on do- 
cuments presented. 

(11) If the agency chooses to use a panel as 
part of the review process, the employee 
may strike up to two of the panel mem- 
bers. 

(12) If the agency chooses to use a single re- 
viewer, the employee may recuse at least 
the first reviewer chosen. 

(13) The employee must choose at the begin- 
ning to go through this procedure or to 
file a grievance under G.S. 126-25. These 
are exclusive remedies; the choice is one 
or the other, but not both. 

(14) The employee shall have 30 calendar days 
in which to seek review of a performance 
pay decision from date of receipt of action 
being disputed. 

( 1 5) The decision of the agency head is final; 
this matter cannot be appealed further. 

(b) The following are guidelines to be consid- 
ered in establishing an internal process for the 
resolution of performance pay disputes: 

(1) The dispute may be reviewed either by a 
panel, a single reviewer or by the agency 
head. 

(2) If the panel process is chosen, the agency 
should maintain a pool of qualified panel 
members. 

(3) The pool of panel members should in- 
clude representatives of all groups, in- 
cluding management, supervisors and line 
employee members. 

(4) The review should be held at the em- 
ployee's worksite. 

(5) No comparative data (i.e., reference to 
other employees) should be allowed. 

(6) Witnesses, other than the employee or 
management's representative, should be 
strictly limited. 



NORTH CAROLINA REGISTER 



635 



PROPOSED RULES 



(7) All members of the panel should be al- 
lowed to ask questions of the employee 
or management's representative. 

(8) A majority vote, rather than a unanimous 
vote, of the panel should decide the re- 
commendation to the agency head. 

(9) The agency head should state in writing 
why he is not accepting the recommenda- 
tion of the panel or single reviewer. 

(10) The agency head may choose to meet 
with employee before reaching his deci- 
sion. 

Statutory Authority G.S. 126-4. 

.0902 USING THE ESTABLISHED 

INTERNAL GRIEVANCE PROCEDURE 

(a) The following are requirements for using 
an existing internal grievance procedure to incor- 
porate a performance pay dispute resolution 
process: 

(1) The initial filing of a performance pay 
dispute shall be with the appropriate divi- 
sion head (department), department head 
(university) or person of a similar level. 
The employee shall not be required to 
begin the process with his immediate su- 
pervisor. 

(2) A grievance may only proceed to those 
steps which have been given authority by 
the agency head to make a decision. 
Employees shall not be required to go to 
a step/person who does not have the au- 
thority to reverse the decision they are 
disputing. 

(3) All applicable time frames of grievance 
procedure, particularly in regard to turn- 
around time for decisions, shall be ob- 
served, except that employees shall have 
30 days in which to initiate dispute review. 

(4) All procedural aspects of the grievance 
procedure shall remain unchanged. 

(5) The employee shall be able to strike up to 
two of the initial members of the griev- 
ance committee. 

(b) The following are guidelines to be consid- 
ered in incorporating performance pay disputes 
as part of an existing internal grievance proce- 
dure: 

(1) An effort should be made to limit this is- 
sue to no more than two steps in the in- 
ternal grievance procedure. 

(2) As much as is possible, the agency should 
strive to give the employee a final agency 
decision in 90 calendar days or less. 

Statutory Authority G.S. 126-4. 



.0903 DEFINITIONS 

The following are definitions to be used in this 
Section: 

(1) Performance pay dispute: A complaint by 
an employee concerning the amount of per- 
formance increase, the performance rating 
or a failure to receive any performance in- 
crease. 

(2) G.S. 125-25 grievances: A complaint by 
an employee that his performance rating 
constitutes inaccurate and or misleading 
personnel file material. 

(3) Employee: Any employee who has suc- 
cessfully completed an initial probationary 
period. 

(4) Remedy: The removal of a performance 
rating found to be inaccurate or misleading; 
the retroactive or prospective adjustment or 
granting of performance pay increase. 

(5) Final agency decision: A decision in writ- 
ing by the agency head. 

Statutory Authority G.S. 126-4; 126-25. 

SUBCHAPTER IK - PERSONNEL TRAINING 

SECTION .0600 - WORK 
PLANNING/PERFORMANCE REVIEW 

.0612 INTERIM PERFORMANCE 
MANAGEMENT RULES 

From the effective date of this Rule through 
December 31, 19S9, the rules in this Section shall 
govern performance management, in both the 
appraisal and compensation areas. Effective 
January 1, 1990, the Performance Management 
System in all its phases shall be governed by 25 
NCAC, Subchapter 10, Performance Manage- 
ment System. 

Statutory Authority G.S. 126-4. 

.0613 FISCAL YEAR 1989/90 PERFORMANCE 
PAN FINDS 

Funds allocated to provide performance-based 
pay increases effective July 1, 1989 will not be 
released to any agency prior to January 1, 1990. 
On January 1, 1990, funds will be released to 
agencies determined to be in compliance with the 
work plan performance review rules in effect 
prior to January 1, 1990. Funds for fiscal year 
1990, 91 will be 'released on and after July 1, l'990 
to agencies determined to be in compliance with 
rules in effect on and after January 1, 1990. 

Statutory Authority G.S. 126-4. 

SUBCHAPTER lO - PERFORMANCE 
MANAGEMENT SYSTEM 



636 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



SECTION .0100 - GENERAL PROVISIONS 

.0101 POLICY 

(a) It is the policy of the State of North Caro- 
lina that top management within each depart- 
ment, agency, and institution initiate and 
maintain an operatise Performance Management 
System. This system is based on the importance 
of managing each individual's work and contin- 
uous communication between employees and 
their supervisors. It ensures that all employees: 

(1) knows what is expected of them; 

(2) are provided with continuous feedback 
about their performance; 

(3) have access to development opportunities; 

(4) are rewarded in a fair and equitable man- 
ner. 

(b) It is desirable that each agency has a system 
for managing performance with a twofold pur- 
pose of establishing, monitoring, and evaluating 
organizational goals; and establishing individual 
expectations, monitoring progress, and apprais- 
ing performance. The first purpose is mandated 
under G.S. 143A-17 and G.S. 143B- 10(h). 
Therefore, this policy focuses primarily on the 
second purpose. These two processes should 
operate in tandem with each other. Once the 
organizational goals are established and commu- 
nicated, individual expectations can be set based 
on these goals such that each employee under- 
stands and can related assigned duties to agency 
goals and missions. 

Statutory Authority G.S. 126-4; 126-7. 

SECTION .0200 - THE PERFORMANCE 
MANAGEMENT SYSTEM 

.0201 PERFORMANCE MANAGEMENT 
PROCESS 

The Performance Management Process is the 
sequence of actions that supervisors take when 
interacting with employees about their perform- 
ance. The three steps are as follows: 
(1) Determine Performance Expectations: 
(a) At the beginning of the work period, the 
supervisor and the employee shall meet to 
determine the employee's expectations. 
It is the supervisor's responsibility to ex- 
plain the performance management proc- 
ess to the employee so that the employee 
understands the importance of his role in 
the organization. This is a planning 
meeting intended to discuss and record the 
employee's current responsibilities plus 
the expectations that describe successful 
completion of each responsibility. 



(b) As soon as expectations arc negotiated, the 
supervisor should begin employing mod- 
eling and coaching techniques that are 
continuous throughout the cycle. Mod- 
cling is putting positive organizational and 
managerial behaviors into practice. 
Coaching is checking with employees to 
determine and guide job performance. 

(2) Hold the Interim Review: 

(a) Every supervisor shall meet with each 
employee at least at the midpoint of the 
work period for an interim review of per- 
formance. The purpose of this meeting 
is to discuss progress in meeting estab- 
lished expectations and initiate action to- 
ward improvement, if needed. It is 
intended to be informal in nature but 
must be documented by date as well as 
by placing a summary of the discussion in 
each employee's file. Progress toward 
each of the employee's expectations must 
be discussed in detail. If there are reasons 
why certain expectations can not be met, 
the supervisor and the employee shall de- 
termine alternative expectations or delete 
them from the work plan. The overall job 
performance shall also be discussed. 

(b) Throughout the work period, the super- 
visor continues to model and coach em- 
ployees because this is a vital part of the 
Performance Management Process. 

(3) Performance Appraisal Review: At the end 
of the work period, every supervisor shall 
meet with each employee to review the em- 
ployee's actual performance against the ex- 
pectations set at the beginning of the work 
period. The supervisor shall discuss how 
well the work was performed, identify good 
performance, and performance which needs 
improvement. They should also agree on a 
plan for improvement, as needed, for the 
next work plan period. The supervisor shall 
determine, communicate, and explain the 
rating for each expectation to the employee. 
The overall performance rating shall be dis- 
cussed so that each employee is told how 
they performed their job overall throughout 
the work period. The results of this meeting 
must be recorded in the official Performance 
Appraisal Summary' and signed by the em- 
ployee, supervisor, and the supervisor's 
manager. 

Statutory Authority G.S. 126-4; 126-7. 

.0202 COMPONENTS OF AN OPERATIVE 
SYSTEM 



NORTH CAROLINA REGISTER 



637 



PROPOSED RULES 



In addition to the three step process (see 25 
NCAC 10 .0201) that supervisors must use 
when interacting with employees, there are cer- 
tain components which each agency's system 
must have. An operatise Performance Manage- 
ment System must have all of the following 
components to be approved: 

(1) Agency-Specific Policy. Top management 
within each department, agency, and insti- 
tution shall develop, implement, and ad- 
minister a Performance Management policy. 
This policy and procedures shall be tailored 
to meet the needs of the organization within 
the parameters of this Section. To simply 
adopt the provisions of the state's policy is 
unacceptable. Iiach policy must reflect the 
conscious decisions that agency manage- 
ment makes in designing their performance 
management system not inconsistent with 
this policy. A department, agency or insti- 
tution's policy must include: 

(a) All of the components of an operative 
system; 

(b) Instructions about how the system will 
operate using the three step performance 
management process; 

(c) An explanation about the role of the em- 
ployee, the supervisor and the supervisor's 
manager; 

(d) A provision requiring that one of the re- 
sponsibilities included in each supervisor's 
and manager's work plan is managing the 
performance of subordinate employees in 
accordance with the agency's Performance 
Management policies and procedures; 

(e) Sanctions to be levied by the agency head 
if all provisions are not met. 

(2) Individualized Work Plan. Each employee 
shall have a work plan established at least 
on an annual basis. A work plan is a spe- 
cific course of action outlining the significant 
responsibilities and duties of an employee's 
job, taken from the employee's position de- 
scription. If no position description exists, 
one shall be written using a job analysis ap- 
proach. Expectations must be written in 
behavioral terms for each responsibility 
and or duty. 

(a) Expectations are the objective measures 
or criteria which state specifically how 
performance is measured throughout the 
cycle. They also serve as the basis of the 
discussion during the interim and ap- 
praisal reviews. Expectations must be 
written at the "meets requirements level". 
These expectations must be substantive 
and include critical indicators so that if 
everyone in a unit performed at that level. 



the unit's goals and objectives would be 
met. Typically, indicators should measure 
both results and behaviors. The work 
plan must also include the methods which 
are going to be used in collecting infor- 
mation about the individual's perform- 
ance. Each employee's work plan should 
include a measure of the ongoing aspects 
of each job as well as any special one-time 
projects and or goals. A measure of both 
the day-to-day activities and the 
projects goals combined comprise a true 
picture of the total job being performed, 
(b) The method(s) used to define establish 
expectations must be congruent with the 
job being done and the number of em- 
ployees doing it. Methods selected must 
ensure that Performance Management 
Systems are as legally defensible as possi- 
ble. If an agency chooses, it may write 
standards at each level of the rating scale 
for groups of employees performing re- 
petitive, standardized jobs. If an agency 
chooses to pursue additional evaluative 
methods such as performance factor rating 
scales for specific categories of jobs, ap- 
proval shall be required by the Office of 
State Personnel before the scale is imple- 
mented. 
(3) Overall Rating. The North Carolina Rat- 
ing Scale shall be used by every department, 
agency, and institution. It is at least a five 
level rating scale. The levels and definitions 
follows: 

(a) Level One - Does not meet expectations. 

(b) Level Two - Meets expectations. 

(c) Level Three - Occasionally exceeds expec- 
tations. 

(d) Level Lour - Exceeds expectations. 

(e) Level Five - Frequently exceeds expecta- 
tions. 

Agencies have until July 1, 1991 to bring their 
overall rating scale into compliance with these 
new levels. WTicn a new rating scale is im- 
plemented, managers, supervisors, and em- 
ployees must be informed and trained in the 
use of the new measures. Employees must 
be informed of the new scale at the beginning 
of the cycle in which they will be used. 
Agencies will have to notify the Office of 
State Personnel of the course of action their 
agency will follow for 19S9 and 1990. Op- 
tional courses of action to help agencies 
change from their current scales are outlined 
in the Guidelines. (See 25 NCAC 10 Section 
.0300.) 

If use of the N.C. Rating Scale scale proves 
that particular job(s) could not be defined 



638 



XORTH CAROLINA REGFSTER 



PROPOSED RULES 



without compromising accuracy at the meets 
level, the agency head may petition the Office 
of State Personnel to use an alternative ap- 
proach. The approach and the scale shall be 
approved by the Office of State Personnel 
prior to use in the respective agency. 

(4) Performance Appraisal Summary. An of- 
ficial Performance Appraisal Summary is 
required (on at least an annual basis) for all 
employees and shall be maintained during 
the work period, completed at the end of the 
work period (at least annually), and placed 
in the employee's file. At the beginning of 
the work period, the supervisor shall record 
the employee's performance expectations in 
the Summary and ensure concurrence of the 
supervisor's manager. 

(a) At the end of the work period, the super- 
visor shall indicate a rating for each per- 
formance expectation and include a 
similar evaluation of the employee's over- 
all performance in the Summary. A 
summary evaluation statement by the su- 
pervisor must be included supporting the 
overall rating. The employee should also 
be provided space and the opportunity to 
comment on his overall rating. The Per- 
formance Appraisal Summary shall then 
be signed by the employee, the supervisor, 
and the supervisor's manager, treated in a 
confidential manner and filed in the 
Agency's official performance appraisal 
files. If an employee chooses not to sign 
the Summary, it is management's respon- 
sibility to determine an alternative method 
of documenting that the appraisal has 
been completely discussed with the em- 
ployee. 

(b) Each employee shall be notified by their 
supervisor where his Performance Ap- 
praisal Summary is kept. The summary 
shall be kept for three years and disposed 
of according to G.S. 121.5(b), (c). 

(c) The same overall rating must be indicated 
on the form requesting an employee's 
performance salary increase. 

(5) Development or Performance Improvement 
Plan. Each department, agency, or institu- 
tion shall have a development or perform- 
ance improvement plan. The development 
or performance improvement plan provides 
a specific course of action to be taken to 
improve the employee's performance or to 
document the growth opportunities in which 
the employee is participating. The develop- 
ment plan may be a part of the work plan 
or stand alone as a separate part of the per- 
formance appraisal. 



(6) Education/Training Program. The State 
Personnel Commission recognizes the need 
for a comprehensive training component for 
agencies to implement a fair and consistent 
performance management system. To be 
fair and beneficial to management and em- 
ployees, all employees must have the skills 
and resulting practices to assure fairness and 
consistency. Agency management shall es- 
tablish an information and performance 
management skills development program for 
employees, managers and supervisors re- 
spectively. The State Personnel Director 
will develop and issue guidelines that man- 
agement can use in their program. 

(7) Performance Pay Dispute Resolution Pro- 
cedure. Each department, agency, and in- 
stitution shall have a procedure for reviewing 
and resolving disputes of employees con- 
cerning performance ratings and or per- 
formance pay decisions. Such a procedure 
may be incorporated as part of an existing 
grievance procedure, or it may be separately 
administered. Eor policy requirements and 
tmidclines on such procedures, see 25 
NCAC U .0901 - .0903. 

Statutory Authority G.S. 121-5; 126-4; 126-7. 

.0203 RELATIONSHIP OF PERFORMANCE 
MANAGEMENT TO OTHER HUMAN 
RESOURCES SYSTEMS 

(a) Performance management is an integral part 
of the overall management of an organization. 
Information obtained during the Performance 
Management Process about individual employees 
or from specific units of the organization shall 
be a consideration in making other personnel 
management decisions. In fact, connections with 
other systems indicate how effective the per- 
formance management system is. The design of 
the job is the basis for job analysis which deter- 
mines the content of the performance appraisal. 
Erom an organizational perspective, information 
obtained from performance appraisals must in- 
fluence selection, staffing, discipline, training, and 
development. 

(b) Performance appraisal information is one 
consideration in making other personnel deci- 
sions such as movement from probation to per- 
manent status, promotions, all performance- 
based disciplinary actions involving one or more 
aspects of the work plan, performance salary in- 
creases, and reductions in force. It is useful in 
comparing employees' performance as required 
in those decisions. Personnel policies dealing 
with these actions also require consideration of 



NORTH CAROLINA REGISTER 



639 



PROPOSED RULES 



other variables: therefore, performance appraisals 
alone can not dictate such decisions. 

(c) In order to achieve internal consistency in 
personnel administration, agencies shall adopt 
procedures which meet the following require- 
ments: 

(1) A current (within the past 12 months) 
Performance Appraisal Summary shall be 
on file for an employee before any of the 
personnel actions listed in Paragraph (b) 
of this Rule can be effected. 

(2) Any proposed personnel action as men- 
tioned in this Rule shall be consistent with 
the overall rating of the employee's per- 
formance. 

(3) In cases in which the recommended per- 
sonnel action appears inconsistent with 
the current overall rating, a written justi- 
fication shall accompany the recommen- 
dation. 

(d) In order to ensure that all employees have 
the opportunity to qualify for performance pay 
increase, agencies shall adhere to the following: 

(1) Probationary employees shall have a po- 
sition description and work plan estab- 
lished within ten working days of date of 
employment. An appraisal shall be com- 
pleted before an employee can be mo\ed 
into permanent status. .After the em- 
ployee becomes permanent, he must have 
an established work plan that is moni- 
tored through a complete cycle in order 
to be eligible for performance pay. 

(2) I-mployees whose responsibilities and du- 
ties are changed either within their current 
position or by transfer (lateral, promotion, 
or demotion) shall have a new position 
description and work plan established 
within 30 days of the new assignment. 

(3) An appraisal review shall be completed 
with employees who transfer within state 
government, prior to their last day of 
work. The Work Plan and Performance 
Appraisal Summary must be placed in the 
employee's personnel tile and sent to the 
receiving unit. 

(4) WTicn the transferred employee arrives in 
the new unit, the supervisor may consider 
the level of documented performance in 
appraisal from the previous unit along 
with the overall performance rating in de- 
termining the time and amount of a per- 
formance salary increase. 

(5) Every employee in a trainee progression 
must have a work plan w ithin ten w orking 
days of employment. This plan helps to 
guide the employee in reaching require- 
ments for the full classification. An ap- 



praisal should be completed before each 
salary increase in granted within the pro- 
gression. 
(e) To provide continuity and consistency in 
treatment when a supervisor changes or an em- 
ployee terminates employment, agencies must 
assure that: 

(1) When a supervisor is leaving a unit, the 
next level manager and the supervisor 
shall agree on each employee's progress 
towards their work plans and document 
this. 

(2) When an employee terminates employ- 
ment in State Government, the supervisor 
should complete the performance ap- 
praisal prior to the employee's last day of 
work and place it in the employee's file. 

Statutory Authority G.S. 126-4; 126-7. 

.0204 RESPONSIBILITIES OF THE STATE 
PERSONNEL COMMISSION 

The State Personnel Commission, under the 
authority of G.S. 126-4 (8) and G.S. 126-7, shall 
adopt policy and rules for performance appraisal. 
The Commission shall submit a report on the 
Performance Management System annually in 
accordance with G.S. 126-7(c)(9). Such a report 
shall include, in addition to statutorily mandated 
information, recommendations for improving 
and correcting any inconsistencies in the total 
Performance Management System and in each 
department, agency, and institution. 

Statutory Authority G.S. 126-4(8); 126-7. 

.0205 RESPONSIBILITIES OF THE OFFICE 
OF STATE PERSONNEL 

(a) The Office of State Personnel, under the 
authority of G.S. 126-3, shall have the authority 
to administer and enforce all policy, regulations, 
and procedures for the performance management 
system throughout North Carolina State Gov- 
ernment by requiring each department, agency, 
or institution to submit whatever evidence and or 
information it deems appropriate. This shall in- 
clude submission of planning documents as well 
as participating in audits conducted by the Office 
of State Personnel. It shall be the responsibility 
of the Office of State Personnel to set the per- 
formance increases allowable for levels of per- 
formance which exceed performance 
requirements. 

(b) The Office of State Personnel shall monitor 
the performance management systems in all de- 
partments, agencies, and institutions. This in- 
cludes monitoring performance increase 
distribution of each employing unit within each 



640 



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PROPOSED RULES 



department, agency, or institution. The Office 
of State Personnel shall review the analyzed data 
from each department, agency, and institution to 
ensure that performance increases arc distributed 
fairly and equitably. A summary report with 
conclusions drawn about the statewide system 
shall be prepared and submitted to the Personnel 
Commission. This report shall also include rec- 
ommendations for improving the total perform- 
ance management system and alleviating existing 
inconsistencies. If deficiencies exist within any 
department's, agency's, or institution's system, 
sanctions may be recommended. 

(c) It shall also be the responsibility of the Of- 
fice of State Personnel to advise departments, 
agencies, and institutions in planning, establish- 
ing, and administering their performance man- 
agement systems. This includes consultation 
concerning training programs. If any depart- 
ment, agency, or institution requests, the Office 
of State Personnel shall also assist in establishing 
an internal performance review system or in us- 
ing its existing grievance procedure to hear per- 
formance pay disputes. 

Statutory Authority G.S. 126-4: 126-7. 

.0206 RESPONSIBILITIES: DEPARTMENTS, 
AGENCIES, INSTITUTIONS 

(a) Top management within each department, 
agency, and institution shall establish, monitor 
and evaluate their individually tailored perform- 
ance management systems subject to approval 
by the State Personnel Director as being in full 
compliance with this Subchapter. Furthermore, 
the head of each department, agency, and insti- 
tution shall be responsible for bringing all units 
within their purview into full compliance with 
this Subchapter by January 1, 1990, except for 
those provisions otherwise stipulated. Failure to 
adhere to this Subchapter may result in the loss 
or withholding of performance increase funds 
throughout an entire department, agency, or in- 
stitution. 

(b) It shall be the responsibility of each de- 
partment, agency, or institution head to submit 
an annual report to the Office of State Personnel 
which includes a complete description of the 
current performance management system, per- 
formance increase distribution of each employing 
unit, data on demographics of performance rat- 
ings, frequency of evaluations, performance pay 
increases awarded, the implementation schedule 
for performance pay increases as well as all other 
information requested. Within 30 days after re- 
ceipt of feedback on this annual report from the 
Office of State Personnel, the head of each de- 
partment, agency, or institution shall prepare a 



written plan alleviating inequities and systematic 
deficiencies and submit it to the Office of State 
Personnel for concurrence. The head of same 
department, agency, or institution shall also take 
sanctions against the managers of those units in 
which inequities or systematic deficiencies exist. 

Statutory Authority G.S. 126-4; 126-7. 

SECTION .0300 - PERFORMANCE 
MANAGEMENT SYSTEM: GUIDELINES 

.0301 IN GENERAL 

(a) This Subchapter is general in nature be- 
cause it must apply to all departments, agencies, 
and institutions. An effective performance man- 
agement system must be tailored to meet the 
needs of the organization within the parameters 
of this Subchapter. 

(b) In order to be in compliance with the Per- 
formance Management Svstem policy (See 25 
NCAC lO .0101 - .0102, '.0201 - .0206), all de- 
partments, agencies, and institutions shall adhere 
to the mandatory provisions that are the mini- 
mum requirements. These include the compo- 
nents of the "Performance Management 
Process", the "Components of a Operative Sys- 
tem", and "Responsibilities". 

(c) While adhering to mandatory provisions of 
this Subchapter, top management should plan a 
course of action by deterrnining: 

(1) The current organizational climate and 
readiness for change; 

(2) The type and the level of involvement of 
top managers, middle managers, and su- 
pervisors in the performance management 
system; 

(3) The process to be used to design or rede- 
sign the features of the performance man- 
agement system specifically for each 
agency; 

(4) The purpose(s) and benefits of the Agen- 
cy's present performance management 
system and over a one to three year pe- 
riod; 

(5) The design of the performance appraisal 
system and how it fits into the organiza- 
tional structure as a management system; 

(6) Implementation strategies spanning a one 
to three year period. 

Statutory Authority G.S. 126-4; 126-7. 

.0302 BENEFITS 

Complete implementation and maintenance of 
the Performance Management System may ben- 
efit each department, agency, and institution by 
providing a systematic way of: 



NORTH CAROLINA REGISTER 



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PROPOSED RULES 



( 1 ) clarifying the relationship between the em- 
ployee's work assignment and the purpose 
and goals of the work unit and the Agency; 

(2) measuring all employees' performance by 
comparing the actual results to the expecta- 
tions; 

(3) documenting the amount of improvement 
since the last appraisal; 

(4) comparing the employee's performance 
with others doing the same or similar jobs; 

(5) rewarding employees who exceed expecta- 
tions; 

(6) motivating employees to achieve excellent 
performance; 

(7) making fair and equitable personnel man- 
agement decisions; 

(8) enhancing communication between the 
employee and the supervisor as well as be- 
tween the supervisor and the manager; and 

(9) establishing, monitoring progress, and 
meeting organizational goals by top man- 
agement. 

The optimum system would produce all of these 
eventually. 

Statutory Authority G.S. 126-4; 126-7. 

.(M0.1 THE PERFORMANCE MANAGEMENT 
PROCESS 

(a) The Performance Management process is 
cyclical in nature because one step in the process 
continuously leads to the next. The three stages 
deemed critical in managing performance in the 
broad organizational context are: 

(1) Establishing and Communicating Organ- 
izational Goals. Under G.S. 143A-17 and 
G.S. 14313- 10(h), each department, 
agency, and institution is required to 
complete an annual plan of work. This 
plan should contain the organization's 
goals. After communicating them 
throughout the organization, these goals 
should set the direction of the organiza- 
tion and of the individual work plans for 
employees. 

(2) Monitoring Progress toward these Goals. 
Throughout the work period, manage- 
ment should continually monitor progress 
toward these goals through its employees' 
work performance. If sufficient progress 
has not been made or cannot be made, the 
goals may need to be revised and or redi- 
rected based on the feedback received. 

(3) Evaluating Organizational Goals. At the 
end of the work period, management must 
decide if the organizational goals were met 
based on whether or not employees per- 
formance met expectations. After outputs 



have been determined, management uses 
information obtained from throughout 
the organization to determine their ac- 
countability to the public, funding 
sources, and to the employees who did the 
work. After recognizing team effort, the 
cycle then begins again for the next year. 

(b) The Office of State Personnel is not re- 
sponsible for implementing or monitoring this 
process. 

(c) Use of the three step process for managing 
the performance of all employees, supervisors, 
and managers is crucial for sound working re- 
lationships. The process of appraisal must be 
regular and ongoing; supervisors must not wait 
until the interim or appraisal reviews to do it. 
There are two techniques which all supervisors 
and managers must use throughout the entire 
cycle. These techniques are modeling and 
coaching, which includes reinforcing. 

(1) Modeling is demonstrating desired behav- 
ior which should be imitated. It is crucial 
that positive, sound management tech- 
niques be practiced every day. 

(2) Coaching involves the informal job-or- 
iented conversations that supervisors usu- 
ally initiate with employees about how the 
work is progressing. They are usually 
positive in nature with emphasis on 
teaching or training the employee. Spe- 
cific advice may be given, but the objec- 
tive is to improve the employee's job 
performance as an individual and as a 
team member. Coaching is a way of 
moving employees toward new areas of 
experience, new demands for skill devel- 
opment, and new application of ingenuity 
and problem solving. Coaching is based 
on observation of the employee's per- 
formance. The key to effective coaching 
is handling problem situations without 
causing resentment. 

(d) Beginning with step one, "Determining 
Performance Expectations", the supervisor is re- 
sponsible for assuring that expectations for all 
jobs within his purview are consistent and equi- 
table. The supervisor's manager must see that 
the expectations for similar jobs across all units 
reporting to him are consistent and equitable. 

(e) The performance management process is a 
two-way system. Vital information must flow- 
back and forth between the supervisor and em- 
ployee. Employees have an active role. They 
must be prepared for the three meetings with 
management. They should gather information 
related to their past performance including spe- 
cific data on activities and accomplishments. It 
is the employee's responsibility to tell the super- 



642 



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PROPOSED RULES 



visor if expectations seem inappropriate and the 
reasons why. After expectations are negotiated 
and the work plan is in place, employees must 
also keep supervisors informed as changes occur 
in case expectations can not be met as planned. 

(f) The interim review is a minimum require- 
ment. To be most effective, supervisors and 
managers need to be coaching and providing 
feedback throughout the process. If an employee 
is not progressing as expected at the interim re- 
view, the supervisor should meet with that em- 
ployee at least once more before the final 
appraisal. One of the purposes of this system is 
to help employees be successful. 

Statutory Authority G.S. J 26-4; 126-7; 143 A- 17; 
I43B- 10(h). 

.0304 COMPONENTS OF AN OPERATIVE 
SYSTEM 

(a) Policy. Since the policy must be agency- 
specific, additional management considerations 
in defining the policy are what they want to ac- 
complish; how they will implement, monitor, 
and evaluate their system; the process and pro- 
cedures that need be established to make the 
system effective for their organization; appropri- 
ate methods of appraisal to be used for various 
jobs; and the education training needed by em- 
ployees, supervisors and managers to implement 
all of this Paragraph. 

(1) Agency management is expected to hold 
managers and supervisors responsible for 
carrying out the Performance Manage- 
ment Process fairly and equitably. Sanc- 
tions and'or definite consequences must 
be clearly understood and must then oc- 
cur as stated in the agency's policy. 

(2) Performance management is a key re- 
sponsibility for supervisors and managers. 
This shall be one of the responsibilities 
included on every supervisor's and every 
manager's work plan. The expectations 
for performance management at all levels 
of management should be defined in the 
department, agency, or institution's pol- 
icy. 

(3) Examples of sanctions which could be 
levied are: 

(A) Automatic denial of any performance 
salary increase if the supervisor's rating on 
the performance management factor docs 
not meet requirements even if all other 
performance exceeds requirements at the 
highest level; 

(B) Issuance of appropriate disciplinary 
warnings, up to and including dismissal, 
for failure to carry out the performance 



management process in accordance with 
agency policy; 
(C) Automatic transfer, demotion of a 
manager following a second warning for 
failure to carry out performance manage- 
ment policy or seeing that subordinate 
supervisors carry out the responsibility in 
accordance with policy. 
The intent behind these sanctions is that no 
employee should be penalized or excluded 
from consideration for a performance salary 
increase because a supervisor or manager has 
not done his job in managing the Perform- 
ance Management Process, 
(b) IndividuahVxd Work Plans. The policy 
(See 25 NCAC lO .0101, .0201 - .0206) states 
that every employee shall have a work plan 
which specifies what each employee does (re- 
sponsibilities and duties) and how it is performed 
satisfactorily (expectations). The following ex- 
plains these two in detail. 

(1) Significant Responsibilities and Duties. 
In order for an employee to perform sat- 
isfactorily, he must have a description of 
the entire job he is to do. The various 
responsibilities and duties in a job are 
listed in the position description. This 
position description should be used as a 
basis for selecting the responsibilities listed 
in the work plan. The ones selected 
should cover 60-70 percent of the job be- 
ing done. All would not be used because 
they may not be significant enough to 
warrant the time required for measuring 
performance. Listing only one or two re- 
sponsibilities is unacceptable because it 
docs not cover the job being done. 

(A) Responsibilities include the ongoing 
aspects of the employee's job that con- 
tinue from one cycle to the next and the 
one-time goals and'or special projects for 
that cycle. It is important to capture the 
actual work being done. 

(B) Expectations must be established for 
each responsibility and/or duty. To be 
considered substantive at the "meets re- 
quirements" level, expectations must be 
measured by one or more indicators. In- 
dicators used to clarify aspects of the re- 
sponsibilities being measured are quality, 
quantity, timeliness, manner of perform- 
ance, cost effectiveness, and resources. 
Expectations must measure behavioral 
aspects of the job as well as the product 
or result. 

(C) It is the immediate supervisor's re- 
sponsibility to determine performance ex- 
pectations with the next level manager's 



NORTH CAROLINA REGISTER 



643 



PROPOSED RULES 



approval. The supervisor shall involve 
the employee in the process, but retains 
final authority, with the approval of the 
manager, for approving the expectations. 

(2) Determination of the performance expec- 
tations requires a mutual understanding 
of: 

(A) primary responsibilities and duties or 
projects; 

(B) relationship of the responsibilities to the 
goals of the work unit and the Agency; 

(C) the relative importance of the employ- 
ees responsibilities and duties listed in re- 
lation to each other; 

(D) what the indicators for measuring per- 
formance at "meets requirements" are as 
well as what and how information will be 
collected and used; 

(E) how information will be reviewed and 
formally appraised at the end of the work 
period. 

(3) Performance expectations must be estab- 
lished or updated at least annually. Ex- 
pectations for ongoing responsibilities 
may remain constant from year to year, 
but they should be reviewed to verify that 
they arc the same or have changed. 

(4) Standards. Agency management should 
analyze the jobs in the organization to 
determine the appropriate methods for 
establishing expectations for similar jobs 
across the organization. Standards for 
groups of employees with the same or si- 
milar responsibilities may be developed 
through a group process. Standards are 
the expectations written each level of the 
approved rating scale. Formal standards 
are preferable for groups of positions 
which have the same responsibilities and 
duties so that all employees are appraised 
in a consistent manner. Different super- 
visors, supervising the same types of jobs, 
but in different units, should evaluate their 
employees using the same criteria. 

(5) Additional Evaluation Methods. Use of 
a list of performance factors that manage- 
ment deems necessary for certain catego- 
ries of jobs such as housekeeping or 
nurses may only be used in addition to the 
required work plan. A performance factor 
checklist is not an acceptable replacement 
for a work plan. The following guidelines 
should be followed: 

(A) Obtain approval from State Personnel 
to proceed with this process. 

(B) Analyze jobs to break them into spe- 
cific functions and key elements. Dem- 



onstrate similarities for job category 
groupings. 

(C) Weigh the importance of each function. 

(D) Develop elements that are expressed in 
objective, measurable terms. 

([;) Specify the level of performance neces- 
sary to achieve a particular rating for each 
function. 

(F) Use separate elements for each job cat- 
egory, keying elements to the specific be- 
haviors on which assessment of 
performance is based. 

(G) Train raters in the use of the rating 
scale. 

Performance factor rating scales will have to 
be individualized to reflect the specific group 
of jobs being analyzed. Documentation 
should also be provided for specific per- 
formance data such as critical incidents that 
support the ratings. 

(c) Overall Rating Scale. The North Carolina 
Overall Rating Scale has been established to 
provide consistency in the Performance Manage- 
ment Process throughout State Government. 
Although the policy is effective January 1, 1990, 
agencies have until July 1, 1991 to implement the 
new scale. Performance increases arc limited to 
those employees whose performance exceeds re- 
quirements. In order to determine the agency's 
course of action toward implementing the new 
scale, management may want to consider the 
following factors: 

(1) Length of time current appraisal system 
and rating scale have been in place and the 
amount of resistance expected; 

(2) Experience and skill of managers and su- 
pervisors in writing performance expecta- 
tions that clearly distinguish levels of 
performance; 

(3) The numbers of employees comprising the 
organization and their locations; 

(4) Number of different jobs; 

(5) Relationship of measurement scale 
changes to other improvement plans, 
goals, and activities involved in imple- 
menting the performance management 
system; 

(6) Time and effort required to communicate 
information and train to all employees; 

(7) Training required to build skills of man- 
agers and supervisors in writing expecta- 
tions using the new scale. 

(d) Performance .Appraisal Summary. Man- 
agement may choose to provide space on the 
Summary for employees to evaluate themselves 
or comment on the supervisors evaluation. 
Since performance appraisal is a sensitive situ- 
ation for employees, top management should 



644 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



adopt procedures to ensure that appraisals are 
kept confidential. Employees deserve to know 
how the Summary is processed when completed, 
the safeguards taken to insure privacy, and lo- 
cation of the permanent file. Since the overall 
performance rating must be consistent with other 
personnel • actions, the agency's procedures 
should address who has access to this informa- 
tion and under what circumstances, 
(e) Development or Performance Improvement 
Plan. The knowledge and skills addressed in the 
work plan are directed to strengthening these ar- 
eas to either correct deficiencies or to help main- 
tain and enhance the employee's performance. 
Therefore, an employee's first development plan 
should be included in their work plan while in 
probationary status. Supervisors assess the em- 
ployee's development level in relation to assigned 
responsibilities when establishing work plans and 
continue to assess progress throughout the cycle. 
Development activities must be planned when 
the work plan is established and or revised during 
the cycle as needed. 

(1) The Development and Improvement Plan 
should specify the steps the employee 
must take to gain the knowledge or skill, 
and must clearly indicate what steps the 
supervisor will take to ensure that the 
employee acquires that knowledge and 
skills. The expected results have to be 
specified before the activity begins so that 
both the employee and supervisor under- 
stand and agree what knowledge and/or 
skill is to be gained and how it is applied 
after training. Timeframes for completion 
and demonstrated improvement should 
also be set. 

(2) Growth opportunities to enhance their 
performance in the current job and en- 
courage employees to meet their fullest 
potential shall be offered to each em- 
ployee. Employees may elect not to par- 
ticipate in this type of development, but 
should be encouraged because of the ben- 
efits to the employee and the organization. 



(f) Education/Training. To be successful a 
performance management system will have to 
include training. Employees need to understand 
what the process is, what to expect and how they 
fit in. Supervisors must be skilled in the coach- 
ing, modeling and interaction process. Finally, 
the characteristics of a performance management 
training program and the competencies for those 
providing information and training are very im- 
portant in providing the skills require. 

(g) Performance Pay Dispute Resolution Pro- 
cedure. Each agency, institution or university 
shall have, either as a component of an existing 
internal grievance procedure or as a separate 
procedure, a process to address complaints of 
employees regarding performance-based pay de- 
cisions. For more detailed requirements and 
guidelines for such procedures, see 25 NCAC U 
.0901 - .0903. 

Statutory Authority G.S. 126-4; 126-7. 

.0305 OPTIONAL COURSES OF ACTION 
BETWEEN 1989 AND JULY I, 1991 

An agency must designate the measurement 
scale that will be used in order for State Person- 
nel to process their performance salary increase 
forms. Each department, agency, or institution 
must designate and use the same option for all 
units. To make the transition from its current 
rating scale to the N.C. Overall Rating scale an 
agency may elect to: 

(1) Maintain its current scale in 1989 and again 
in 1990. 

(2) Change the scale in 1989 and/or 1990. For 
example, an agency with a three level scale 
may decide to maintain that scale in 1989 
and then gradually increase the "exceeds" 
level to two in 1990. 

(3) Change to the new N.C. Overall Rating 
scale (with three levels above meets expec- 
tations) in 1989 or 1990. 

Agencies must, pursuant to G.S. 126-7, imple- 
ment the new scale for appraisals completed be- 
tween 1991 and 1992 and thereafter. 

Statutory Authority G.S. 126-4; 126-7. 



NORTH CAROLINA REGISTER 



645 



FINAL RULES 



Th 



he List of Rules Codified is a listing of 
rides that were filed to be effective in the 
month indicated. 



JKules filed for publication in the S'CAC 
may not be identical to the proposed text 
published previously in the Register. Please 
contact this office if you have any questions. 

/\ dopted tides filed by the Departments of 
Cotrection, Revenue and Transportation are 
published in this section. These departments 
are not subject to the provisions ofG.S. 150B, 
Article 2 requiring publication in the N.C. 
Register of proposed rules. 

LJ pon request from the adopting agency, the 
text of rules will be published in this section. 



r\ n agency has 30 days from the effective 
date of a tide to notify this agency of any ty- 
pographical or technical errors in the tide as 
codified. These corrections are incorporated 
into the List of Rules Codified and are noted 
as* Correction. .1 typographical or technical 
error docs not change the effective date if 
corrected within the 30 day requirement. 



TITLE 5 - DEPARTMENT OL 
CORRECTION 

CHAPTER 2 - DIVISION Ol PRISONS 

SUBCHAPTER 2D - PUBLIC 
COMMUNICATIONS 

SECTION .0200 - VISITATION: 
POLICY/PROCEDURE 

.0201 GENERAL 

(a) Introduction. Visiting performs a vital 
function in the correctional process and should 
be as free and open as security considerations 
permit. Inmates should be encouraged to main- 
tain a close contact with members of their fami- 
lies and desirable friends through visitation 
privileges. 

(b) Application. Fach inmate shall be required 
to submit an application on Form DC- 159 (ap- 
proved visitors list) Listing the name, address, re- 
lationship, and age of each person designated as 
a personal visitor. Visitors, other than immediate 
family members or those who have acted as im- 



mediate family members, may not be approved 
for visiting privileges with more than one inmate. 
Immediate family members shall be interpreted 
for the purposes of this policy to mean parents, 
spouse, children, brothers, or sisters. The term 
"those who have acted as immediate family" 
shall be interpreted to mean those who have 
served as parents in the absence of jiatural or 
adopted parents. Only immediate family mem- 
bers or those who have acted as immediate family 
will be approved for visitation with more than 
one inmate. 

(c) Approval of the Application. The complete 
visitor list DC- 159, shall be submitted to the unit 
superintendent or institution head or his desig- 
nated representative for approval. The visitor list 
shall be reviewed and questionable visitors shall 
be investigated prior to approval. 

(d) Procedures for Disapproval 

(1) Original Application. A copy of the ori- 
ginal visitor list (DC- 159) will be returned 
to the inmate indicating those visitors who 
have been disapproved. The basis for 
which a visitor may be disapproved must 
be reasonable. Reasonable grounds for 
which a visitor may be disapproved are as 
follows: 

(A) The visitor has been disruptive during 
previous visits. 

(B) The visitor has attempted to visit while 
under the influence of alcohol or drugs 
during previous occasions or has at- 
tempted to bring alcohol or drugs or other 
contraband into the prison facility. 

(C) The visitor has refused to submit to a 
routine search or show proper identifica- 
tion during a prior visit. 

(D) The visitor was a participant in the 
criminal activity for which the inmate is 
incarcerated. 

(I') The visitor's presence in the unit or in- 
stitution would undermine security con- 
siderations or corrective treatment. 
(F) The visitor has previously had his vis- 
iting privileges terminated indefinitely 
without reinstatement by the Director of 
Prisons or his designated representative. 
I'pon receipt of the original visitor list, each 
inmate will be responsible for advising those 
visitors who have been disapproved that 
they will not be authorized entry into the 
prison facility. 

(2) Visitors who have been originally ap- 
proved and have subsequently demon- 
strated reasonable grounds for disapproval 
in accordance with ( 1 ) of this Subsection, 
shall be notified in writing by the super- 
intendent or institution head that their vi- 
siting privileges have been terminated. 



646 



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FINAL RULES 



The unit superintendent or institution 
head shall advise the visitor of the reason 
for the termination of the visiting privi- 
leges and whether the visiting privileges 
are terminated indefinitely or for a desig- 
nated period of time. Disapproved visi- 
tors shall be advised that they may appeal 
in writing to the Director of Prisons or his 
designated representative requesting resto- 
ration of visiting privileges and their justi- 
fication for this action. 

(e) Prior Criminal Record. The fact that a vi- 
sitor has a prior criminal record may be grounds 
for disapproval of the visitor's application. 
I Iowever, an exception may be granted for im- 
mediate family members. The fact that there has 
been no previous relationship between the in- 
mate and the visitor prior to incarceration will 
not, in of itself, be grounds for denial of visitation 
privileges. Likewise, marital status of the inmate 
or the visitor will not be determinative. Nor- 
mally, visits between inmates and the immediate 
family members of other inmates will not be al- 
lowed. 

(f) Changes in the Approved List. Requested 
changes in the inmate's approved visitor's list 
may be submitted at intervals determined by the 
unit superintendent or institution head. The 
maximum interval for visitor list changes will not 
exceed 30 days and changes will be allowed by a 
receiving facility upon inmate transfer to that fa- 
cility. 

liistorv Mole: Statutory Authority 
G.S. 148-11; 148-22; 
Eff. Fcbnuvy I. 1976; 
Amended Eff. October 1, I9S9; 
November 20, 1978. 

.0204 RULES FOR VISITING 

(a) Identification and Search. All visitors must 
be properly identified. Personal visitors may be 
required to present a driver's license, a social se- 
curity card, or any other form of positive iden- 
tification to prove that they are listed on the 
approved visitors list. Attorneys, clergymen, and 
other special visitors may be required to show 
professional credentials as well as personal iden- 
tification. All necessary precautions shall be 
taken to assure that no contraband is carried into 
prison facilities. Visitors may be subjected to 
routine searches in accordance with departmental 
policy and procedure on search and seizure (5 
NCAC 2F .0100). 

(b) Visiting Hours, Number of Visitors, Fre- 
quency and Duration of Visits. Normally, in- 
mates will be allowed no more than one visiting 
session per week not to exceed two hours. Nor- 
mally, the maximum number of visitors per in- 



mate per visiting session will not exceed three 
approved adults. Children under 16 years of age 
may be allowed to accompany the adults pro- 
vided they remain under the immediate super- 
vision of the adults during the visit: 

(1) Visiting hours will be established by the 
unit superintendent and approved by the 
area administrator or institution head. 

(2) Routine visiting hours may extend from 
12 noon to 5:00 p.m., Saturdays and,or 
Sundays. Facilities with special control 
requirements may develop visiting periods 
and other visiting procedures to establish 
secure operations and proper supervision 
of the visiting area. Visitation will not 
occur on holidays unless special visits are 
approved by the superintendent/ institu- 
tion head. Regular visitation periods may 
be modified to meet unusual security or 
operational considerations. Under rou- 
tine visiting circumstances, general popu- 
lation inmate movement will not be 
restricted during visiting periods except 
from the visiting area. Inmates who pose 
a disruption to visitation may have their 
movements restricted. In the event that 
inmate disturbances recur, appropriate re- 
strictions on general inmate movement 
may be imposed at the facility where the 
disturbance occurs, subject to approval 
by the area administrator or institution 
head. 

(3) Food stuffs and picnic lunches may be 
authorized where outside visiting areas at 
minimum custody units may be utilized 
for this purpose. Food stuffs and picnic 
lunches will only be authorized in outside 
visiting areas at minimum custody units. 
No food stuffs of any type will be au- 
thorized at medium, close and maximum 
custody institutions. Beverages of any 
type shall not be authorized in any visiting 
area of the Division of Prisons. 

(c) Visiting Areas and Supervision of Visits. 
The unit superintendent or institution head shall 
choose the visiting area at each facility. The area 
chosen should be as comfortable and pleasant as 
security requirements permit. An officer shall 
be present in the visiting area at all times to su- 
pervise visits and insure institution safety. 

(d) Records. A record of all visits, regular and 
special, shall be kept on Form DC- 163. The 
visitor's name and address shall be entered on 
this form. Whenever practical, the visitor shall 
be required to sign the form. 

(e) Violations of Visiting Privileges. Visits shall 
be conducted in a quiet, orderly manner. In the 
event any inmate or visitor becomes unduly 
emotional or creates a disturbance, the visit may 



NORTH CAROLINA REGISTER 



647 



FINAL RULES 



be terminated and the participants removed from 
the visiting room or area. Any efforts to cir- 
cumvent or evade these regulations may result in 
disciplinary action against the inmate and appro- 
priate administrative and/or legal proceedings 
against the visitor, (note G.S. 14-258.1) 

History Vote: Statutory Authority 
G.S. 148-11; 148-22;" 
Eff February I, 1976; 
Amended Eff. October 1, 1989; 
November 20, 1978. 

SUBCHAPTER 2E - TREATMENT 
SECTION .1500 - SAFETY AND HEALTH 

.1501 PURPOSE 

(a) The North Carolina Department of Cor- 
rection subscribes to the Executive Order estab- 
lishing the State Employee's Work Place 
Requirements Program for Safety and Health. 
The Division of Prisons through the exercise of 
its authority shall assure insofar as possible 
through a Comprehensive Correctional Safety 
and Health Program that every employee in the 
Division of Prisons will have safe and healthful 
working conditions and meet the standards pro- 
vided in Executive Order No. 6 (1985); and G.S. 
93-129.1; 95-130.1; and 95-148. 

(b) The rights and duties of employers and 
employees as desenbed in these standards shall 
henceforth become a part of the rules and regu- 
lations of the Division of Prisons. 

(c) The Division of Prisons will make a vigor- 
ous and diligent effort to achieve full compliance 
with these standards and will commit such re- 
sources as required to fully perform the respon- 
sibilities assigned to state agencies as described in 
the Order. 

(d) Employees are hereby guaranteed the exer- 
cise of their rights under the Safety and Health 
Standards without being subjected to retaliation. 
These rights include the right to register com- 
plaints about unsafe working conditions; the 
right to be fully informed about disposition of 
complaints: and the right to be fully advised 
about violations of safety standards. These rights 
also include the right to participate in the safety 
program and to be represented at safety in- 
spections. 

History Sole: Authority G.S. 95-129.1; 
95-130.1; 95- 148; 148-11; 
Executive Order S umber 6; 

Eff. October 1, 1989. 

.1502 SI PERVISORY AND EMPLOYEE 
RESPONSIBILITY 



(a) Supervisory Responsibility. It shall be the 
basic responsibility of each supervisor to plan 
and conduct safe operations. It shall be the duty 
and responsibility of each supervisor to fully ori- 
ent and instruct all employees in safe practices 
and procedures. Supervisors shall immediately 
take necessary corrective action to prevent reoc- 
currence or initiate such action as deemed neces- 
sary to correct any unsafe act or condition 
reported or observed. Allowing an unsafe con- 
dition to exist could be cause for disciplinary ac- 
tion. 

(b) Employee Responsibility. It shall be the 
responsibility of each employee to abide by all 
departmental rules and regulations and to comply 
with all laws pertaining to employee safety and 
health. Unsafe acts or conditions observed by 
any employee shall be reported immediately to 
the responsible supervisor. 

History Note: Authority G.S. 95-129.1; 
95-130.1; 95-148; 148-11; 
Executive Order Number 6; 
Eff. October I, 1989. 

.1503 CONTRACTING AGENCY 
RESPONSIBILITY 

The Department shall encourage all lessors who 
contract with the Division of Prisons to cooper- 
ate fully with the Division to assure lessor com- 
pliance with these standards. The Division shall 
alert lessors of any observed serious violations 
and shall utilize such sanctions as are consistent 
with contract terms in assisting the responsible 
lessor to enforce safety laws, rules and regu- 
lations. The Division should refrain from con- 
tracting with lessors who fail to cooperate and 
comply with these standards. 
Note: This regulation is not intended to relieve 
lessors of any liability they may have under ex- 
isting law. 

History Note: Authority G.S. 95-129.1; 

95-130.1; 95-148; 148-11; 
Executive Order Number 6; 
Eff. October I. 1989. 

TITLE 19A - DEPARTMENT OF 
TRANSPORTATION 

CHAPTER 3 - DIVISION OF MOTOR 
VEHICLES 

SUBCHAPTER 3D - LICENSE AND THEFT 
SECTION 

SECTION .0200 - MOTOR VEHICLE DEALER 
AND SALESMAN LICENSE 

.0216 DEFINITIONS 



648 



NORTH CAROLINA REGISTER 



FINAL RULES 



(a) Statutory Definitions: Definitions for 
words and phrases used in these regulations not 
defined in subsection (b) shall be the same as the 
definitions appearing in G.S. 20-286 and G.S. 
20-4.01. 

(b) Administrative Definitions: The following 
words and phrases shall have the meanings listed 
below when used in these regulations: 

(1) "Principal Place of Business" - Means a 
salesroom containing 96 square feet of 
floor space in a permanently enclosed 
building or structure which is separate and 
apart from any living quarters, residence 
or other business and having a separate 
entrance; where any vehicles displayed are 
separate and apart from vehicles of any 
other dealer; having displayed thereon or 
immediately adjacent thereto a sign, in 
block letters of not less than 3 inches in 
height on a contrasting background, 
clearly and distinctly designating the trade 
name of the business at which a perma- 
nent business of bartering, trading and 
selling of motor vehicles will be carried on 
as such in good faith and at which place 
of business shall be kept and maintained 
the books, records, and files the Division 
may require as necessary to conduct the 
business at such location. A building 
would not be considered permanent if it 
has wheels. In order for a manufactured 
home to be considered a permanent en- 
closed building, it would have to be un- 
derpinned and wheels removed. 
Provided, however, the minimum area re- 
quirement provided for in this Paragraph 
is not applicable to any established place 
of business lawfully in existence and duly 
licensed on or before January 1, 1978. 

(2) " 'Supplemental Ixication' - Any im- 
proved or unimproved lot that is not im- 
mediately adjacent to the principal place 
of business at which a permanent business 
of bartering, trading and selling motor ve- 
hicles will be carried on as such in good 
faith and which is located within the rele- 
vant trade area of the applicant dealer as 
defined by G.S. 20-286(13b). A supple- 
mentary lot must have displayed thereon 
a sign in block letters not less than 3 
inches in height on a contrasting back- 
ground, clearly and distinctly designating 
the trade name of the business and the 
address and telephone number of the 
principal place of business. Supplemental 
locations must operate in exactly the same 
name as the principal place of business 
and only vehicles owned by or lawfully 
consigned to the principal place of busi- 



ness may be offered for sale at supple- 
mental locations. Provided, the 
provisions of this Subparagraph shall not 
apply to sales of recreational vehicles and 
boat trailers which take place at trade 
shows within the franchise area of the 
participating licensed dealers. If a partic- 
ular recreational vehicle or boat trailer 
manufacturer has not awarded a franchise 
in an area where a trade show is to take 
place, other licensed dealers holding a 
franchise from the manufacturer may no- 
netheless participate in the show." 

(3) "Suspension" - The temporary withdrawal 
of a license issued by the Division of 
Motor Vehicles to a motor vehicle dealer, 
manufacturer, factory branch, distributor, 
wholesaler or their salesman or represen- 
tative for a definite period. 

(4) "Revocation" - The termination of a li- 
cense issued by the Division of Motor 
Vehicles to a motor vehicle dealer, man- 
ufacturer, factory branch, distributor, 
wholesaler or their salesman or represen- 
tative. 

(5) "Automobile" - Any passenger car or sta- 
tion wagon. 

History Xote: Filed as a Femporary 
Amendment Eff. February 9, 1989 
For a Period of 180 Days to Expire 
on August 8, 1989; 

Statutory Authority G.S. 20-1; 20-302; 
Eff. June 1, 1988; 

Femporary Amendment Expired Eff. 
August 8, 1989; 
Amended Eff. October I. 1989. 

.0219 Bl SINF.SS RECORDS 

(a) All motor vehicle dealers, manufacturers, 
factory branches, distributors and wholesalers 
shall keep a record for at least four years of all 
vehicles manufacturers, received, sold, traded or 
junked. In addition to these records, a copy of 
an odometer disclosure form, completed with the 
information required by law from the seller and 
a copy of an odometer disclosure form, com- 
pleted with the information required by law, 
given to the purchaser. 

(b) Additional records required under this sec- 
tion shall include: 

(1) Make, body style, vehicle identification 
number, and year model. 

(2) Name of person, firm or corporation from 
whom acquired. 

(3) Date vehicle purchased or manufactured. 

(4) Name of person, firm or corporation to 
whom sold or traded. If vehicle junked, 
date, name and address of person, firm or 



NORTH CAROLINA REGISTER 



649 



FINAL RULES 



corporation to whom frame, motor and 
body sold. 

(5) Date vehicle sold or traded. 

(6) Copy of bill of .sale (written statement). 

(c) All records required to be maintained in 
Paragraphs (a) and (b) shall be kept and main- 
tained for every vehicle purchased or sold and 
shall be kept so as to be readily available for in- 
spection upon demand from an authorized agent 
of the North Carolina Division of Motor Vehi- 
cles in order that the ownership of any vehicle 
purchased or sold can be traced. 

(d) Manufacturer's Certificates of Origin and 
title for all vehicles owned by a motor vehicle 
dealer, manufacturer, factory branch, distributor 
or wholesaler must be immediately available to 
assign to the purchaser. 

(e) Retail installment sales must be made in 
accordance with G.S. 20-303. Cash sales may 
be made by proper endorsement and delivery of 
the title to the purchaser and any other receipt 
that the purchaser and seller agree upon. 

(f) Pursuant to 16 OR 455.2 a dealer shall not 
willfully remove the "Monroney Label" or 
sticker from a new automobile that is displayed 
for sale. The "Monroney Label" must be affixed 
to the new automobile at the time of sale to the 
ultimate purchaser. "Ultimate Purchaser" means 
the first person, other than a dealer purchasing in 
his capacity as a dealer, who in good faith pur- 
chases a new automobile for purposes other than 
a resale. 

(g) Pursuant to 15 USC Sec. 1231 every dealer 
offering used cars for sale shall post buyers guides 
with warranty information as required by the 
Federal Trade Commission and same shall be 
displayed at the time of sale. 

History Sole: Statutory Authority 
G.S. 20-1; 20-52. 20-75; 20-79(a) and (b); 
20-82; 20-286(6) and ( 15); 20-297; 20-302; 
20-303; 20-347; 
tiff. June 1, 1988; 
Amended Eff. October I. 1989. 

.0221 CONDITIONS FOR ISSl ING 

TEMPORARY MARkIRS BY A DKALF.R 

(a) Ownership in the vehicle must pass from 
the dealer to the purchaser by assigning the title 
or Manufacturer's Certificate of Origin and by 
delivering the vehicle to the buyer. 

(b) Dealer has obtained from purchaser an ap- 
plication for registering and titling of the pur- 
chased vehicle. 

(c) Dealer has collected all prescribed fees for 
titling and registering the vehicle. 

(d) Dealer has certification (Form FR-2) certi- 
fying liability insurance in effect. 

(c) Lxception: 



The only exception to the above rules b 
and c is when the dealer is selling the ve- 
hicle to an out-of-state purchaser and the 
vehicle is to be removed from the State 
of North Carolina to the purchaser's 
home state prior to the expiration of the 
30-day temporary registration marker. 
Form FR-2 (Insurance Certification) shall 
be completed and kept by the dealer as 
part of his records, 
(f) Issuance of 30-day temporary marker: 

(1) All 30-day temporary markers shall be is- 
sued in numerical order, beginning with 
the lowest number of the set or sets. 

(2) The vehicle identification number, the 
make, the issuance date, and the expira- 
tion date shall be entered clearly and 
indelibly on the face of the temporary 
marker. 

(3) A receipt, which corresponds in number 
with the 30-day temporary marker, shall 
be issued. 

(4) The receipt shall be completed in dupli- 
cate, with pen and ink, and must be read- 
able. 

(5) The white copy of the receipt, with the 
30-day marker, shall be delivered to the 
purchaser. The pink copy is to be re- 
tained in the book by the issuing dealer 
for at least one year. 

(6) All documents necessary to title and reg- 
ister the vehicle shall be presented to a li- 
cense plate agency or mailed to the North 
Carolina Division of Motor Vehicles four 
workina days from date of issuance. 
(EXCEPTION): When the purchaser is 
a nonresident, a 30-day temporary marker 
may be issued to the nonresident for the 
sole purpose of removing the vehicle to 
his home state, provided the customer has 
in effect liability insurance with a com- 
pany licensed in North Carolina. The 
dealer is neither required to obtain from 
such nonresident a written application for 
North Carolina registration nor to collect 
the North Carolina registration fees. 
However, Form FR-2 should be com- 
pleted and kept by the dealer as part of 
his records. If a plate is to be transferred, 
a 30-day temporary marker cannot be is- 
sued. Record the information on the re- 
port sheet in the back of receipt book. 

(7) All 30-day temporary markers and/or re- 
ceipts that are voided shall be marked 
"voided" and recorded on the report 
sheet. The white copy of the receipt and 
the 30-day temporary marker shall be 
forwarded to the North Carolina Division 
of Motor Vehicles Fnforcement Section 



650 



NORTH CAROLINA REGISTER 



FINAL RULES 



together with the report sheets. Receipts 
and 30-day temporary markers that do not 
match shall be returned to the Division 
after recording on report sheet. The re- 
ceipt is not to be altered. 

(8) Only one 30-day temporary marker may 
be issued per vehicle per sale. 

(9) Upon issuance of all receipts (Markers) in 
each receipt book, the report sheet must 
be completed in duplicate and the original 
mailed to the Division. A copy of the 
report sheet must be retained by the 
Dealer for one year. 

History Note: Statutory Authority 
G.S. 20-39; 20-79.1; 
Eff. June 1, 1988; 
Amended Eff. October I, 1989. 

.0222 DEALER'S DELIVERY/PURCHASER'S 
APPL: REGISTRATION 

History Note: Statutory Authority 
G.S. 20-39; 20-79.1; ' 
Eff June 1, 1988; 
Repealed Eff. October I, 1989. 

.0224 ILLEGAL USE OF DEALER PLATES 

(a) It is illegal to use dealer plates on vehicles 
operated for any other business that the dealer is 
engaged in. The sale of farm machinery, not in- 
cluding farm tractors, is considered another busi- 
ness and delivery of farm machinery by motor 
transport is not permitted with dealer plates. 

(b) Parts trucks used in delivering parts to other 
sales outlets may use dealer plates only if the sale 
of parts is incident to the dealer business. A 
parts business that is separate and apart from the 
dealership cannot use dealer plates. 

(c) It is illegal to use dealer plates on vehicles 
that are not owned by the dealer. 

(d) Dealer may allow the operation of motor 
vehicles and trailers owned by dealers in the per- 
sonal use of persons other than those employed 
in the dealer's business, provided said persons 
shall at alJ times while operating a vehicle under 
this provision be in possession of a certificate 
valid for 96 hours. (Forms furnished by the Di- 
vision for this purpose.) This permit may be re- 
newed for one additional 96-hour period. The 
said permit must include license number, date 
and hour of issue and must be signed by dealer 
or sales manager and person receiving vehicle. 
Void if erasures are made. 

(e) It is illegal to use dealer plates on wreckers 
used for general wrecker service or on wreckers 
which move vehicles on a rotation basis at the 
request of state or local law enforcement author- 
ities. It is permissible to use a dealer plate on 



wreckers which tow vehicles for the dealer's cus- 
tomers only. 

History Note: Statutory Authority 
G.S. 20-39; 20-79; 
Eff. June 1, 1988; 
Amended Eff. October I, 1989. 

.0228 BILL OF SALE, ODOMETER 
STATEMENT - WRITTEN 
DOCUMENTATION 

(a) Bill of Sale - Every motor vehicle dealer, 
manufacturer, factory branch, distributor or 
wholesaler at the time of sale or trade shall pro- 
vide to the buyer in writing the applicable infor- 
mation listed below which may be on a bill of 
sale, buyer's order, financial statement or combi- 
nation thereof. Each form must be completed in 
duplicate, signed by the buyer and seller, and the 
original or copy provided to the buyer and a copy 
of original retained by the dealer for four years. 
Such documents shall include: 

(1) Name and address of person, firm or 
corporation to whom vehicle sold or 
traded. 

(2) Date of sale or trade. 

(3) Name and address of motor vehicle 
dealer, manufacturer, factory branch, dis- 
tributor or wholesaler selling or trading 
vehicle. 

(4) Make, body style, vehicle identification 
number and year model. 

(5) Sale price of vehicle. 

(6) Amount of cash down payment made by 
the buyer. 

(7) Description of any vehicle used as a 
trade-in and the amount credited the 
buyer for sale trade-in. [Description of 
trade-in shall be the same as outlined in 
(d) of this Rule.] 

(8) Amount of finance charge, if any, and 
interest. 

(9) The cost of insurance to the buyer, if any, 
and an explanation of the type and 
amount of coverage. 

(10) Any investigation charges, service charges 
or any other charge or charges not in- 
cluded in previous items. The purpose 
of each charge must be specified. 

(11) Net balance due from the buyer. 

( 1 2) The amount of each payment and the 
time and schedule of deferred payment 
and to whom payments are to be made. 

(13) Bill of sale must be signed by both the 
seller and buyer. 

(b) Odometer Statement - Odometer reading 
must be placed on ownership documents in 
compliance with Article 15 of Chapter 20 of the 
North Carolina General Statutes. 



NORTH CAROLINA REGISTER 



651 



FINAL RULES 



History Note: Statutory Authority G.S. 20-39; 
Eff. June 1, 19H8; 
Amended Eff. October I, I9S9. 

.0231 HEARINGS PURSUANT TO ARTICLES 
12 AND 15 OF CHAPTER 20 

(a) The following shall be applicable to hear- 
ings requested under G.S. 20-296: 

(1) No license issued under this Article shall 
be suspended, revoked or renewal refused 
until a hearing has been had before the 
Commissioner or a person designated by 
him and licensee shall have been notified 
in writing ten days prior to such hearing 
by certified mail to his last known address 
as shown by records of the Division. 
Provided, however, if a licensee fails to 
maintain a bond as required by G.S. 
20-288(e) or fails to purchase dealer li- 
cense plates as required by G.S. 20-79, the 
Division shall cancel the dealer's license 
subject to the provision that the licensee 
shall be granted a hearing if requested in 
writing within ten days after the date of 
cancellation of such license. 

(2) I learing shall be held at a place designated 
by the Commissioner. 

(3) The licensee shall be advised of the deci- 
sion of the Commissioner in writing by 
certified mail within 30 days of the deci- 
sion to his last known address as shown 
by records of the Division. 

(4) The decision of the Commissioner or his 
duly authorized representative, after hear- 
ing, shall be final and appeal therefrom 
shall be as provided in Chapter 150B of 
the North Carolina General Statutes (G.S. 
20-300). 

(b) Except as otherwise provided, the North 
Carolina Rules of Civil Procedure will be appli- 
cable to hearings requested under N.C.G.S. 20- 
304 through 20-305.4. 

(1) Action shall be initiated by the filing of a 
petition with the Commissioner of Motor 
Vehicles, North Carolina Division of 
Motor Vehicles, Raleigh, N. C. 27697, 
who shall serve a copy thereof on the af- 
fected manufacturer by certified mail (re- 
turn receipt requested) with notice that 
such manufacturer should reply to the 
subject petition of the dealer within 30 
days unless enlargement of time to file a 
reply is requested and allowed by the 
Commissioner. 

(2) Petitioner and replies: 

(A) The form of the petition shall be the 
same as that required for filing of petitions 
in the superior court and there shall be 



attached thereto a copy of the franchise 
agreement between the dealer and man- 
ufacturer. 

(B) The form of the reply to the petition 
shall be the same as required for the filing 
of a reply to a petition in the superior 
court and there shall be attached thereto 
a copy of the franchise agreement between 
the manufacturer and dealer. 

(C) Exhibits and supporting documents 
shall be attached to the petition or reply 
at the time of filing. 

(3) The hearing shall be held at a place desig- 
nated by the Commissioner upon 20 days 
written notice to both the petitioner and 
respondent. 

(A) It shall be the obligation of the parties 
involved to have present at any hearing 
all witnesses which the parties desire to 
be heard. 

(B) The parties shall be advised of the de- 
cision of the Commissioner in writing by 
certified mail to the addresses as shown in 
the pleadings filed in the action. 

(4) The decision of the Commissioner or his 
duly authorized representative after hear- 
ing shall be final and appeal therefrom 
shall be as provided in Chapter 1 SOB of 
the North Carolina General Statutes (G.S. 
20-300). 

(c) If license is cancelled due to licensee's failure 
to maintain a bond as required by G.S. 20-288(e) 
or failure to purchase dealer license plates as re- 
quired by G.S. 20-79, then the licensee may have 
a hearing if requested in writing within ten days 
after the license cancellation. 

History Note: Statutory Authority 
G.S. 20-1; 20-294 through 20-296; 
20-301 through 20-305; 20-305. J 
through 20-305.3; 
Eff. June 1, 1988; 
Amended Eff. October I, 1989. 

SECTION .0500 - GENERAL INFORMATION 

REGARDING SAFETY INSPECTION OF 

MOTOR VEHICLES 

.0515 SAFETY INSPECTION LICENSING 
AND PROCEDURES 

(a) The Director of the Office of Administrative 
I learings has determined that publication of the 
complete regulations governing licensing as a 
North Carolina Safety Equipment Inspection 
Station, and the requirements and procedures for 
such inspections are impracticable, and that the 
substance of this Rule should be summarized in 
accordance with the provisions of G.S. 
l50B-63(c). 



652 



NORTH CAROLINA REGISTER 



FINAL RULES 



(b) The regulations and procedures governing 
the licensing of Safety Equipment Inspection 
Stations for all counties are contained in a man- 
ual entitled "Safety Equipment Emission In- 
spections, Windshield Certificate Replacement 
Regulations Manual." This manual includes all 
procedures and forms to be used in the process 
of the safety inspection required by law. 

(c) Official copies of these manuals are avail- 
able upon request from the Enforcement Section, 
Division of Motor Vehicles, Department of 
Transportation, 1 100 New Bern Avenue, Ra- 
leigh, N. C. 27697. 



History Note: Statutory Authority 
G.S. 20-1; 20-117.1 (a); 20-122; 20-122.1; 
20-123.1; 20-124; 20-125; 20-/25.1; 
20-126; 20-/27; 20-128; 20-128.1; 20-129; 
20-129.1; 20-130; 20-130.1; 20-/30.2; 
20-130.3; 20-131 through 20-134; 20-183.2; 
20-1S3.3; 20-183.4; 20- 1 S3. 5; 20- 1 S3. 6; 
20-183.7; 20-183.8; 150B-63(c); 
Eff. January I, 1983; 
Amended Eff. October 1, 1989; 
November I, 1988. 



NORTH CAROLINA REGISTER 



653 



NC AC INDEX 



title/major divisions of the north carolina administrative code 
hue department 

1 Administration, Department of 

2 Agriculture, Department of 

3 Auditor, Department of State 

4 Commerce, Department of 

5 Corrections, Department of 

6 Council of State 

Cultural Resources, Department of 

8 Elections, State Board of 

9 Governor, Office of the 

10 Human Resources, Department of 

1 1 Insurance, Department of 

12 Justice, Department of 

13 l^ibor, Department of 

14A Crime Control and Public Safety, Department of 

15 Environment, Health, and Natural Resources, Department of 

16 Public Education, Department of 

17 Revenue, Department of 

18 Secretary' of State, Department of 
19A Transportation, Department of 
20 Treasurer, Department of State 

*21 Occupational Licensing Boards 

22 Administrative Procedures 

23 Community Colleges, Department of 

24 Independent Agencies 

25 State Personnel, Office of 

26 Administrative Hearings, Office of 

NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CHAPTER LICENSING BOARDS 

2 Architecture, Board of 

4 Auctioneers, Commission for 

6 Barber Examiners, Board of 

8 Certified Public Accountant Examiners, Board of 

10 Chiropractic Examiners, Board of 

12 General Contractors, Licensing Board for 

14 Cosmetic Art Examiners, Board of 

16 Dental Examiners, Board of 

18 Electrical Contractors, Board of Examiners of 

20 Eorestcrs, Board of Registration for 

21 Geologists. Board of 

22 I Iearing Aid Dealers and Litters Board 

26 Landscape Architects, Licensing Board of 

28 Landscape Contractors, Registration Board of 

31 Martial &. Eamily Therapy Certification Board 

32 Medical Examiners, Board of 

33 Midwifery Joint Committee 

34 Mortuary Science, Board of 

36 Nursing, Board of 

37 Nursing Home Administrators, Board of 

38 Occupational Therapists, Board of 
40 Opticians, Board of 

42 Optometry, Board of Examiners in 



654 NOR TH CAROLINA REGIS TER 



NC AC INDEX 



44 Osteopathic Examination and Registration, Board of 

46 Pharmacy, Board of 

48 Physical Therapy Examiners, Board of 

50 Plumbing and Heating Contractors, Board of 

52 Podiatry Examiners, Board of 

53 Practicing Counselors, Board of 

54 Practicing Psychologists, Board of 

56 Professional Engineers and Land Surveyors, Board of 

58 Real Estate Commission 

60 Refrigeration Examiners, Board of 

62 Sanitarian Examiners, Board of 

63 Social Work, Certification Board for 

64 Speech and Language Pathologists and 

Audiologists, Board of Examiners of 

66 Veterinary Medical Board 



NORTH CAROLINA REGISTER 655 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1989 - March 1990) 



1989 - 1990 

Pages Issue 

1 - 151 1- April 

152 - 192 2- April 

193 - 216 3- May 

217 - 289 4- May 

290 - 311 5- June 

312 - 364 6- June 

365 - 454 7- July 

455 - 477 8- July 

478 - 521 9- August 

522 - 584 10- August 

585 - 616 11- September 

617 - 658 12- September 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMINISTRATIVE ORDER 

Administrative Order, 4, 152 

AGRICULTURE 

Cotton Warehouse, 220 PR 

Markets, 217 PR, 546 PR 

N.C. Pesticide Board, 292 PR 

N.C. Plant Conservation Board, 196 PR 

N.C. State Fair, 217 PR 

Plant Industry, 153 PR, 218 PR 

COMMERCE 

Finance Center, 368 PR 

N.C. Cemetery Commission, 198 PR 

N.C. Milk Commission, 455 PR 

COMMUNITY COLLEGES 

Board of Community Colleges, 352 PR 



656 



NORTH CAROLINA REGISTER 



CUMULA TIVE INDEX 



CORRECTION 

Division of Prisons, 472 FR, 646 FR 

CRIME CONTROL AND PUBLIC SAFETY 

Victim and Justice Services, 573 PR 

CULTURAL RESOURCES 

Archives and History, 370 PR, 455 PR, 593 PR 

Arts Council, 371 PR 

U.S.S. North Carolina Battleship Commission, 548 PR 

EDUCATION 

Elementary and Secondary Fducation, 253 PR, 295 PR, 511 PR 

ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 

Coastal Management, 239 PR, 508 PR, 574 PR 

Community Assistance, 134 PR 

Departmental Rules, 601 PR 

Economic Opportunity, 178 PR 

Environmental Management, 18 PR, 160 PR, 202 PR, 238 PR, 295 PR, 347 PR, 431 PR, 456 PR 

Governor's Waste Management Board, 617 C 

Marine Fisheries, 47 PR, 457 PR 

Wildlife Resources and Water Safety, 134 PR, 178 PR, 207 PR, 252 PR, 574 PR 

FINAL DECISION LETTERS 

Voting Rights Act, 5, 193, 367, 523, 587, 618 

FINAL RULES 

List of Rules Codified, 183 FR, 274 FR, 303 FR, 445 FR, 515 FR, 609 FR 

GOVERNOR/LI. GOVERNOR 

Executive Orders, 1, 290, 312, 365, 478, 522, 585 

HUMAN RESOURCES 

Departmental Rules, 372 PR 

Facility Services, 199 PR, 377 PR, 594 PR 

Governor's Waste Management Board, 552 PR 

Health Services, 153 PR, 315 PR, 405 PR 

Medical Assistance, 158 PR, 294 PR, 455 PR, 549 PR, 601 PR, 620 PR 

Mental Health: Mental Retardation and Substance Abuse Services, 17 PR, 417 PR 

Social Services, 550 PR 

Vocational Rehabilitation Services, 7 PR 

Water Treatment Facility Operators Board of Certification, 549 PR 

INDEPENDENT AGENCIES 

Housing Finance Agency, 459 PR 

INSURANCE 

Agent Services Division, 561 PR 

Fire and Casualty Division, 202 PR, 479 PR 

JUSTICE 

Criminal Justice Education and Training Standards Commission, 569 PR 

Private Protective Services Board, 621 PR 

Sheriff's Education and Training Standards Division, 491 PR 

LICENSING BOARDS 

Architecture, 349 PR 



NORTH CAROLINA REGISTER 657 



CUMULA TIVE INDEX 



CPA Fxaminers, 458 PR 

General Contractors, 512 PR 

landscape Architects, 443 PR 

Medical Examiners, 604 PR 

North Carolina Certification Board for Social Work, 179 PR 

Nursing, Board of, 296 PR 

Physical Therapy Fxaminers, 262 PR 

Practicing Psychologists, 606 PR 

REVENUE 

Sales and L'se Tax, 353 PR 

STATE PERSONNEL 

State Personnel Commission, 181 PR, 210 PR, 265 PR, 461 PR, 624 PR 



STATEMENTS OF ORGANIZATION 

Statements of Organization, 524 SO 

TRANSPORTATION 

Division of Motor Vehicles, 140 FR, 607 FR, 648 FR 



65S NOR TH CA ROLINA REGIS TER 



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